insurance

[Kalinalvey]

I am a Self Employed healthcare provider and I just opened my business last year, so this is new for me. The majority of my income has been from insurance (Anthem/BCBS, United healthcare/UMR/Surest, aetna, wellcare, etc).  What documents will I need to file taxes to report this income? Will the insurance company send me a statement? How does that work? I want to be prepared and need to know how to navigate reporting income received by insurance for providing healthcare services. 

[TimS5]

Congratulations on your new business!

As a business owner, you are required to keep track of the income you receive from the various entities/individuals who your provide services to.  Entities paying you over $600 should be providing you you with a 1099NEC for the amounts that they pay.  However, it is advisable for you to also keep track of the amounts you are paid as their maybe discrepancies between what they report and what you receive.  At the same time, you will want to keep track of all of your business expenses that you incur.  You will also want to keep receipts for the expenses that you incur.  

A couple of links that you should look at you that will provide you with more detail are:  Reporting Self-Employment Business Income and Deductions and Estimated Taxes:  How to Determine What to Pay and When.  These will assist you in getting started down the correct path.  

[KochuK]

Hi Kalinalvey, thanks for posting an event question.

Congrats on opening your business last year by being a healthcare provider. The insurance companies may issue a Form 1099 to you if total amount paid is more than $600.

The Form 1099 could be Form 1099-Misc Miscellaneous Information or Form 1099-NEC Nonemployee Compensation depending on how your service is classified.

https://www.irs.gov/pub/irs-pdf/f1099msc.pdf Box 6 Medical and Health care payments

https://www.irs.gov/pub/irs-pdf/f1099nec.pdf  Box 1 Nonemployee compensation.

Recommend that you keep track of your income from each insurance company to verify with the future Form 1099 to be received. You also should record all out of pocket expenses since the self employment activities (income and expenses) are to be reported on Schedule C of Form 1040.

About Schedule C (Form 1040), Profit or Loss from Business (Sole Proprietorship)

https://www.irs.gov/forms-pubs/about-schedule-c-form-1040

Hope the above helps.

Thank you,

Kitty