Start Now! Tax-Deductible Health Insurance 2024 for First Jobbers
Choosing health insurance that meets your needs not only provides peace of mind when sick or unwell but can also help you manage taxes. Especially for first jobbers who just start working, financial planning is important. Tax-deductible health insurance will help you manage income and reduce tax burdens effectively. However, before deciding on health insurance, it's essential to consider a tax-deductible insurance plan that aligns with your lifestyle and does not create a financial burden in the future.
- What to consider before purchasing health insurance for tax deduction 2024
- Why must first jobbers file taxes?
What to consider before purchasing health insurance for tax deduction 2024
For first jobbers just starting work, health care is something to pay attention to because illnesses can happen anytime, and the existing benefits may not cover all expenses. Therefore, health insurance not only helps with tax deduction 2024 but also increases confidence in life when faced with medical expenses that can quickly drain your wallet. However, choosing health insurance that fits your lifestyle and income may confuse many people. Let's look at how to choose health insurance that provides comprehensive coverage, is affordable, and meets the needs of working life before deciding to get health insurance.
Which health and life insurance policies can and cannot be used for tax deduction?
Many people think of buying life insurance and health insurance for tax deduction 2024 as a tool to reduce taxes effectively. But did you know that not all types of insurance can be used for tax deductions? So let's first understand which types of insurance are tax-deductible and which ones are not.
Tax-deductible insurance
- Life insurance and savings or term-life insurance premiums: tax-deductible up to the actual amount paid, up to 100,000 Baht per year
- Health insurance premiums: tax-deductible up to the actual amount paid, up to 25,000 Baht (can be combined with life insurance and savings insurance, not exceeding 100,000 Baht)
- Health insurance premiums for parents: tax deductible up to the actual amount paid, up to 15,000 Baht
Which insurance is not tax-deductible?
- Group insurance: benefits provided by companies to employees; the company can deduct it for corporate tax, but employees cannot use it for personal tax deduction
- Life insurance premiums for children: cannot be used for tax deduction. Parents can only use the deduction for children's expenses as specified by the government. Therefore, before purchasing insurance for tax deduction, it's necessary to choose the type of insurance beforehand.
How comprehensive is the health insurance you are considering?
- Insurance premiums: To control expenses, you can consider paying premiums in annual mode; also, health insurance premiums tend to increase with age. Plus, paying annually saves more than paying monthly premiums.
- Coverage for outpatient (OPD) and inpatient (IPD) treatment: The policy specifies coverage amount per visit per illness, specifies coverage amount per year, or specifies the maximum number of visits per policy year.
- Coverage for critical illnesses, death, and other benefits: or other endorsements, such as dental care and maternity care.
- Recommended coverage amount: Check if the policy covers medical expenses and allows treatment at the preferred hospital or choose comprehensive health coverage without a limit on medical expenses, covering everything from minor illnesses to serious conditions.
- Compensation: Income is crucial for salaried employees. If you get sick, it might affect your income. Therefore, choosing health insurance that covers income compensation can replace lost income during treatment, including additional compensation in cases such as death, loss of limbs, disability, etc.
Premium: Choose what you can afford
Choosing suitable health insurance is not just about coverage; it also requires considering your income and tax burden. For first jobbers, tax planning is something to keep in mind, as tax-deductible health insurance can help reduce your tax burden. At the same time, you should ensure that you can comfortably pay the insurance premiums without affecting your finances. Higher coverage comes with higher insurance premiums.
Risk assessment
Everyone has a different lifestyle, such as eating raw or grilled food, BBQ, shabu-shabu, smoking, drinking alcohol, lack of rest, or overworking. There are also genetic risks like cancer, heart disease, diabetes. If you know you are at risk, you should use this information to assess and plan for health insurance that meets your needs.
Check existing benefits
For example, Universal Coverage Scheme (Gold Card), social security benefits, or group insurance from your employer. Check if the coverage is sufficient for your needs and covers the risks in your life. For instance, if you need treatment with advanced technology that cannot be reimbursed, or you want to stay in a hospital room with better quality than what your benefits cover, purchasing additional health insurance can help you get more comprehensive coverage.
Why must first jobbers file taxes?
Filing personal income tax is the duty of anyone who earns income. Whether you are just starting your working life or have previous work experience and have filed taxes before, you are required to file taxes. Filing personal income tax is mandated by tax law, which states that Thai citizens must file taxes to report their income. Who is required to file taxes, and what tax-deductible health insurance options for 2024 are interesting? Let’s discuss.
Who must file taxes
- Salaried employees with net income exceeding 150,000 Baht per year must file and pay taxes according to the law.
- Salaried employees with net income not exceeding 150,000 Baht per year are exempt from taxes, but they still have the duty to file taxes as required by law.
What happens if you don’t file taxes?
For those who miss the annual tax filing deadline, a fine of up to 2,000 Baht may be imposed according to Section 35 of the Revenue Code, but you can request a reduction.
If there is tax to be paid, you must file at the local Revenue Department office and pay the tax along with an additional 1.5% per month, or part of a month, of the unpaid tax. The fine is not more than 2,000 Baht under Section 35.
For first jobbers just starting work, choosing tax-deductible health insurance will give you double peace of mind—both in terms of medical expenses and tax management in 2024. Choosing a tax-deductible insurance plan that matches your income and needs is important. There’s no need to choose the most expensive plan, just one that covers basic medical expenses suited to your lifestyle and risks. Using the tax deduction benefits from health insurance premiums will also help reduce your tax burden. It’s a smart financial plan right from the start of your working life.
For first jobbers paying taxes, start now with health insurance, deductible up to 25,000 Baht. Start with D Health Lite
For more information:
☑️ Call Tel. 1766, available 24/7.
☑️ Contact online channels, agents, branches, and other channels of Muang Thai Life Assurance nationwide.
Underwriting is subject to the Company’s rules.
Please study the details of coverage, conditions and exclusions before making a decision to purchase insurance.
Sources: data retrieved on 10/09/2024
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