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January 26, 2022
Question

How do I make a medishare check deposit not be counted as income? (Medishare is not insurance) This check deposit should not be taxed.

  • January 26, 2022
  • 1 reply
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This check was deposited into our business account, and has nothing to do with the business itself. The check is meant to cover the itemized medical bills. I’m not sure how to separate this deposit as well as payments, to the different healthcare vendors, from my business account? Reason it’s in the business account and not the personal account is because our personal account is mostly online, the mobile check deposit is too large. The nearest brick and mortar location is well over a 100 miles away. Any help is much appreciated, thank you in advance!

1 reply

Rustler
January 27, 2022

Assuming you are taxed as a sole proprietor or a partnership, use owner equity investment as the source account for the deposit.

 

And when you pay a medical bill from the business, use owner equity drawing as the expense (reason) for the payment