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Family Health Expenses
$6,500
Must be paid from personal after-tax income
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Tax Drag
At 49.53% marginal rate, James loses almost half of every dollar earned to tax
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Gross Billings Required
$12,870
James must generate this much in billable work just to have $6,500 after tax
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The Reality
• Uses fully taxed personal income
• No corporate deduction
• Loses ~$6,370 to tax
"I'm working extra hours just to pay for medical costs."
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Same Expenses
$6,500
All HSA-eligible: medical, dental, optical, therapy, prescriptions
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HSA Structure
Wellbytes HSA set up through James's corporation. Expenses submitted as corporate HSA claims
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Corporate Payment
Corporation reimburses James $6,500 as a deductible business expense. Reduces taxable income
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The Win
• Receives $6,500 tax-free
• Corporation deducts the cost
• Keeps ~$6,370 more income
"This is the easiest tax win I've ever had."
