Anthony Sykes & Company

           It seems that everywhere you look, disasters are taking place. Whether it’s earthquakes, fires, or floods, there are any number of circumstances that can completely change your life. However, to receive any federal assistance, make insurance claims, or write off tax losses, records will need to be provided. It might not be the first thing on your mind, but there are some simple steps that can be taken to help reach that goal.           Financial statements can be gathered from your credit card company or bank, in digital or paper form when requested. Property records can also be requested from the bank, escrow, or title company. If the property is inherited, court records can be used to estimate the value. If there is nothing else, the county assessor’s office will have records that address property value. If home improvements have been made, reach out to the contractors and get statements from them ...

As the 2019 Novel Coronavirus ( COVID-19 ) spreads, people are doing one of two things. They are either changing their routines completely hoping that it does not directly affect them, or they are making slight modifications ready to get tested if they feel the onset of symptoms. The information and direction from sources like the Centers for Disease Control ( CDC ) is clear. People may wonder if getting a COVID-19 test would change their deductible medical expenses. Are these tests covered?          The Internal Revenue Service ( IRS ) has determined that High Deductible Health Plans ( HDHP ) can pay for COVID-19 testing and treatments. In a previous post, we discussed the details of Health Savings Accounts ( HSA ) and how they affect a person’s tax responsibilities. Simply put, these plans and accounts will cover the testing needed if you feel it necessary to go to the doctor. Do not let worries about taxes keep you from seeking medical help that you ...

         In the event of a disaster, there are many issues that must be taken care of. First and foremost is to make sure that your family and loved ones are cared for. After that, Taxpayers will be able to reconstruct their records to prove disaster related losses. Often these have already been destroyed, but there are ways to get copies.           Financial statements can be requested from a bank or credit card company. They are usually available online, or hard copies can be provided in person. Property records can be provided by the title company, escrow company, or the bank that handled the purchase. If any home improvements were made, copies of the invoices and statements should be requested from the contractors. For inherited properties, Taxpayers can investigate court records for probate values. The county assessor’s office can also be a source to estimate property value. For car owners , the current fai...

        When looking into options to provide health coverage for employees, Health Reimbursement Arrangements ( HRA ) are often chosen by different businesses. This is a popular option for firms to give to their retired employees, as it gives a predictability ( maximum number ) for their yearly health costs. However, there are limitations on what they can cover. Some are put in place by the company, others by the Internal Revenue Service ( IRS ). HRA ’s are an attractive option because funding them is tax deductible for the company, but they are not the only option available.           A Flexible Spending Account ( FSA ) can be created. The employee will decide how much goes into this account, using some of their pre-tax salary to fund it. Typically, if there is any unused money at the end of the year, it cannot be rolled over to the next. A Health Savings Account ( HSA ) is paired with a high-deductible health plan ...

         A Health Reimbursement Arrangement ( HRA ) is a plan set up by a business to cover the qualified medical expenses such as prescription medications, physical exams, care from a psychologist or psychiatrist, and more. They are a tax deduction for the employer and tax free for the employee. In our last post, we mentioned that January 2020 would mark a big change in how HRA ’s could be administered.           Next year, a new type of HRA can be offered and used to buy health insurance inside or outside the Affordable Care Act marketplace. Another option that is available applies to companies that continue to offer group health insurance. They can offer an excepted benefit HRA , which would reimburse employees up to $1,800 for qualified medical expenses. If an employee were to decline group coverage and only go with the HRA , they could only use it for expenses, short term insurance and premiums. ...

          A Health Reimbursement Arrangement ( HRA ) is a plan set up by an employer. It covers medical expenses related to the care of employees and their dependents. This type of fund can be claimed as a deduction by the business and is usually tax free for the employee. This is often an attractive option for businesses because they determine how much will be in the fund. Any expenses over that amount will be covered by the employee.           This is not an account that can have withdrawals as necessary. The expense must be made, then it will be reimbursed. Since the HRA belongs to the company, if the employee leaves, they will lose the benefit. Starting in January 2020, HRA ’s will undergo a massive change. Our next post will detail why that is.

Starting in January of 2020 , California will require all residents to have basic health insurance. The bill passed in the California Assembly is called the California Health Care Coverage Shared Responsibility Act. This “Individual Mandate” is like what was seen in the Affordable Care Act. There will be a fine for individuals who do not secure health coverage. This can be applied based on the number of months, or the size of the household. One big difference with this requirement is that the Franchise Tax Board ( FTB ) will not fine employers who do not offer health care to their employees. The fines that are collected will help to create subsidies for those who have difficulties paying for the insurance. These individuals must meet certain specific criteria. Members of Native American tribes and those who receive certificates of exemption will not be required to be a part of this program. The FTB will administer the program and any penalty will be reported on, and paid with,...