Calculate Your Tax Savings

Convert your out-of-pocket medical expenses into 100% tax-deductible business expenses. Estimate your benefits and tax savings below.

Calculator Inputs

Employee Annual Health Care Costs ($)

Employee Annual Income ($)

Employee Marginal Tax Rate (%)

Estimated Net Savings

Incorporated Shareholder Employee

Unrelated Employee

Unincorporated Owner-Manager Employee

The information provided is not intended to replace or serve as a substitute for any professional legal, accounting, tax, or other advice. You should consult with a qualified professional in the respective legal, accounting, tax, or other professional field to determine if this plan meets your unique requirements.

See Detailed Examples

Assumptions & Estimated Costs Comparison

Assumptions and Estimated Costs	Cost to Individual	Cost to Corporation	Cost to Individual	Cost to Corporation	Cost to Individual	Cost to Corporation
Estimated annual health care expenses	$5,000	$5,000	$1,500	$1,500	$200	$200
Estimated PHSP administration fee	-	$120	-	$60	-	$60
Estimated pretax gross income required to pay for expenses	$9,345.79	$5,120	$1,926.75	$1,560	$310.08	$260.00
Estimated tax credit (assumes 20% on expenses exceeding lesser of 3% net or $2109)	$578.20	-	$60.00	-	-	-
Estimated net pretax income required to pay health care expenses	$8,767.59	$5,120	$1,926.75	$1,560	$310.08	$260.00
Estimated net savings to the incorporated shareholder employee		$3,647.59		$366.75		$50.08
Estimated net savings to the unrelated employee		$8,767.59		$1,926.75		$310.08
Estimated net savings to unincorporated owner-manager employee		$8,647.59		$1,866.75		$250.08