Working longer hours leads many people to admit they could take better care of their health. Understanding how to use a tax break credit for medical care, wellness and prevention could go a long way for individuals who are self-employed or working as contractors. Claiming a medical and dental expense tax break with the IRS, however, generally requires a contractor to set themselves up properly with an employer identification number. We’ve made a tax id example application and summary page available so that you can get a closer look at what’s needed to get set up.
Advantages for Self-Employed Individuals and Contractors
Being classified as self-employed is usually determined by completing a job as a sole proprietor or working as a contractor. Many people don’t understand that taking advantage of all the available tax deductions is best done by setting up a tax entity to keep better track of spending and expense records. A separate entity can easily be created by filling out an EIN number application and using that number when filing tax returns.
Unlike traditional business expenses, medical and dental outlays are not required to be incurred while working on a job or during a contract. Tax credits are available for all expenses paid during that year for an individual, spouse and dependents.
Expenses self-employed individuals and contractors can deduct:
There are additional expenses that can be deducted to maintain a healthy lifestyle. Without proper planning and record keeping, however, the IRS won’t recognize your right to a claim.
Take Full Advantage of Tax Breaks
Gov Doc Filing makes it simple to set up a new tax entity with an expedited process on our EIN number application page. Our specialists are available to help you learn more about tax entities and tax credits.