IRS Mileage Rate
The IRS business mileage rate for 2015 has just been released and is 57.5 cents per mile
2014-2015 Medical expenses – tax treatment
The basic principle is that payment for a group healthcare plan is a non-taxable benefit; the payment or reimbursement of individual insurance is taxable. This is a major change from previous years and the potential penalties are up to $100 per day per person affected. This change begins with 2014. There are some exceptions:
|
Type of Insurance |
Tax Treatment |
Notes |
|
Group Health Insurance Plan |
Non-taxable |
|
|
GuideStone insurance |
Non-taxable |
Even if only one employee; group plan of Southern Baptists |
|
Payment of individual plan |
taxable |
|
|
Payment of individual plan with only one FT employee |
Not taxable – see note below |
IRS notes exceptions of groups less than two. See note below |
|
Reimbursement of individual plan through the govt. exchange |
Taxable |
Tax credit and/or subsidies are received from the government when signing up |
|
Other information |
||
|
Health Reimbursement Arrangement |
Non-taxable |
Can only be offered in conjunction with a group plan; never as a stand-alone apart from insurance. Requires a properly written plan available to all employees who work 30 hours per week or more. Plans from previous years may not be valid now. |
Groups fewer than two: I have received conflicting information from 2 trusted sources (CPAs and attorneys) One says that groups fewer than two refer to retirement health plans. The other says that this can be done and treated as a benefit. Health and Human Services has been requested to clarify and they have not done so.
Here are some excellent resources:
Department of Labor: http://www.dol.gov/ebsa/newsroom/tr13-03.html
GuideStone: Reimbursement Vehicles and the ACA: http://www.guidestoneinsurance.org/HealthcareReform2/ReimbursementVehicles
State Missionary Lee Wright serves Alabama Baptists as the Church Compensation coordinator. He may be contacted at [email protected], direct at 334-613-2241 or toll free at 1-800-264-1225, ext. 241.
