Return to TFB Main Page
Return to Current Edition
Texas Agriculture Archive

June 7, 2002

Save with AgriPlan BizPlan

For farmers and small business owners unable to rely on a steady income check throughout the year, tax management can make a big difference.

Currently, 33 Texas Farm Bureau members use AgriPlan/BizPlan to help them afford health benefits for their families and save money on taxes. AgriPlan/BizPlan draws upon a little-known tax provision, IRS Code Section 105 and Revenue Ruling 71-588, which allows qualifying self-employed individuals a 100 percent tax deduction of family health care expenses. Those who qualify for AgriPlan/BizPlan are self-employed, have a spouse who assists with the business (even on a part-time basis) and have fewer than three employees. Family health insurance premiums as well as non-insured medical, dental and vision care expenses are 100 percent deductible on federal and self-employment taxes.

The 33 TFB members, some who have been with the plan since 1994, represent over 70 tax years. The annual average annual savings enjoyed by the nearly 40,000 AgriPlan/BizPlan clients nationwide is $2,450. Multiplying the number of tax years by the average savings and it's estimated the plan has saved those TFB members collectively more than $178,000.

TASC, the Midwestern-based company which administers the plan, works with tax and financial service professionals in administering these medical deductions. AgriPlan/BizPlan has assisted family farmers with the deductions since 1986. For a small annual fee, the plan performs the documentation and maintenance necessary for the proper use of a Section 105 plan and backs their work with an audit guarantee.

TFB recently renewed its contract with AgriPlan/BizPlan, a division of the Madison, Wisconsin-based Total Administrative Services Corporation (TASC). TFB members are entitled to a $10 annual discount on the $175 enrollment fee. To learn more about the plan call 1-800-422-4661 and press 7.