is insurance expense a debit or credit?
476108
When the asset is charged to expense, the journal entry is to debit the insurance expense account and credit the prepaid insurance account. Thus, the amount charged to expense in an accounting period is only the amount of the prepaid insurance asset ratably assigned to that period.
1095200
Why Expenses Are Debited Since owner's equity's normal balance is a credit balance, an expense must be recorded as a debit. At the end of the accounting year the debit balances in the expense accounts will be closed and transferred to the owner's capital account, thereby reducing owner's equity.
55444
Many health insurance premiums are tax deductible, including the ones you pay for Medicare. But unlike premiums for insurance plans you get through an employer, Medicare premiums are generally not considered pretax. Pretax deductions are those taken out of your wages before it's taxed.
492432
Expense Accounts An expense is a cost you incur during the normal operating activities of your business. When you debit office supplies as an expense to an account such as Office Supplies, you would credit a Cash account if you paid for the supplies with cash.
711004
Some of the confusion arises because other types of insurance premiums (property and liability, for example) can be deductible business expenses. ... This isn't because insurance premiums are by themselves deductible, but because the insurance premiums are treated as payments or contributions that are deductible.
1155817
Increases in revenue accounts, the cash sales, are recorded as credits. Cash, an asset account, is debited for the same amount. An asset account is debited when there is an increase, such as in this case.
950370
You need to make an accrued liability entry in your books. Usually, an accrued expense journal entry is a debit to an expense account. The debit entry increases your expenses. You also apply a credit to an accrued liabilities account.
1154253
Discounts allowed represent a debit or expense, while discount received are registered as a credit or income.
439622
Usually, an accrued expense journal entry is a debit to an expense account. The debit entry increases your expenses. You also apply a credit to an accrued liabilities account. The credit increases your liabilities.
1028213
Business insurance, including professional indemnity insurance, counts as an 'allowable expense', which means it's a cost you can deduct when you're calculating your taxable profit. When you're calculating your taxable profits for your tax return you can subtract business expenses from your income.
239770
Medical insurance premiums are deducted from your pre-tax pay. This means that you are paying for your medical insurance before any of the federal, state, and other taxes are deducted. ... To itemize your medical expenses you will need to complete Form 1040, Schedule A: Itemized Deductions.
147856
Premiums for only medical care insurance are deductible as a medical expense. Premiums for non-medical benefits, including disability income, accidental death and dismemberment, and waiver of premium under a life insurance policy, are not deductible.
1090886
The money deposited into your checking account is a debit to you (an increase in an asset), but it is a credit to the bank because it is not their money. It is your money and the bank owes it back to you, so on their books, it is a liability. An increase in a Liability account is a credit.
19352
Life insurance premiums are deductible as a business-related expense (if the insured is an employee or a corporate officer of the company, and the company is not a direct or indirect beneficiary of the policy).
71335
2. Medical and Dental Expenses. ... Fortunately, some of these expenses are deductible if you itemize your personal deductions. These include health insurance premiums (including Medicare premiums), long-term care insurance premiums, prescription drugs, nursing home care, and most other out-of-pocket heath care expenses.
1396093
In addition to your monthly premium, your deductible is the amount of money you have to pay out-of-pocket for covered medical expenses before your insurance company starts helping with costs. ... The deductible, therefore, does not represent the maximum amount you have to pay before an insurer pays for everything.
660815
Life insurance premiums are considered a personal expense, and therefore not tax deductible. From the perspective of the IRS, paying your life insurance premiums is like buying a car, a cell phone or any other product or service.