The new health care law offers farmers some tax breaks on medical insurance.
That's according to South Dakota Cooperative Extension Family Resource Management Specialist Liz Gorham.
One tax break is in the Small Business Jobs Act, where the sole proprietor receives a deduction for health-care costs on their 2010 tax returns," Gorham says. "A farmer or other self-employed person will be able to deduct their health insurance premiums as a business expense. As such, income and self-employment taxes are reduced for the 2010 tax year."
Gorham recommends the Center for Rural Affairs' website as a source for an explanation of the benefits. See it at www.cfra.org/policy/health-care.
The Affordable Care Act allows businesses with 25 or fewer employees to offset 35% of an employee's health care costs, Gorham adds.
"These employers are covered as small business tax credits in the new laws, and both laws provide significant and crucial relief for family farmers, ranchers, and 'main street' business owners who have watched their health insurance premiums climb over the past few years," Gorham says.