The range of fitness-related expenses covered by the PHIT Act spans far and wide. You may be asking yourself: How does the PHIT Act affect gyms and those involved in the fitness industry?
To start: the next marathon you race could be tax deductible, as well as your son’s hockey pads. Because the initiative works to get people in the gym more, you could see an uptick in visits to your fitness studio. If you sell sports or fitness equipment, you could see a rise in customers picking up your gear and merchandise. Those who work in the health and fitness field, we anticipate, will see an overall change in prospect interest.
The PHIT Act may benefit many local fitness studios and independent personal trainers, as well. The PHIT Act essentially reimburses up an extra $1,000 per year in pre-taxed medical accounts. For Americans looking to invest in their health and wellness, this Act could be the ticket to getting fit.
For families, the Act means $2,000 of additional reimbursement. When things like sports camps, equipment, and gym memberships are covered, it’s to be expected Americans will take advantage. You may start to see a change in your fitness business because of this.
While the U.S. doesn’t have the reputation of being the most healthy country, it’s looking to change this perspective in the new PHIT Act. Research states that 2 out of 5 Americans are more incentivized to workout when a financial incentive is involved. Congressmen see this as a simple, helpful bill that will eventually free up money for all families in any age or income bracket.
If the PHIT Act passes the Senate, more families and single Americans may seek out your fitness facility. Here’s how you can use the potential passing of the PHIT Act to further educate those seeking your services or products.
What’s Covered? What’s Not?
If you’re a private club that offers golf instruction, horseback riding sessions, or hunting lessons, your business will not be reimbursed for patrons. If you’re a public health club that offers classes with a fee, you may start to see more traffic. Personal trainers may start to see a rise in the number of clients. Public health clubs may see more people signing up for classes and camps. For a complete list of what’s covered and what’s not under the PHIT Act, visit the bill.
Before telling all of your potential clients and members about how new patrons can “write-off” their gym expenses, make sure your fitness business is eligible.
Taxpayers Need a Health/Medical Savings Account, First
Without a medical savings account or a health savings account, taxpayers will not be able to utilize the bill. In many settings, employers offer these accounts. Additionally, those looking to be reimbursed by the PHIT Act will need to meet the 10% of income threshold on medical expenses.
For those unsure if they qualify for a health or medical savings account, first visit these tips.
Leverage the Bill’s “Preventative” Initiatives
Those advocating for the PHIT Act are advocating for health and wellness. By preventing medical conditions before they happen, you take a stand for putting your health first. Utilizing this as a way to promote your health club is a simple, effective way to gain member traction. It demonstrates your love of health beyond the aesthetics.
Many people still have doctor-prescribed fitness routines. What do we mean? For people who need exercise to get back to health, their workouts may be reimbursed by the government already. However, before the PHIT Act reaches the Senate, try promoting your fitness studio as a way to get back to health. You may think: Many of us may forget that while working out is fun, endorphin-pumping, and gets you where you’d like to be physically – it’s also a way to prevent illness.