Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

Self Employed health insurance

Shirley79
Level 4

Can the full amount of Medicare premiums be deducted as self employment health insurance on the Schedule C if the profit is only slightly more than the premiums?

0 Cheers

This discussion has been locked. No new contributions can be made. You may start a new discussion here

1 Solution

Accepted Solutions
dbelling
Level 3

self employed health insurance never decreases the income on schedule C...you enter it on Schedule C in the box for self employed and then it flows as a deduction on the form 1040.  The deduction is limited to net income of the business.

View solution in original post

9 Comments 9
dbelling
Level 3

self employed health insurance never decreases the income on schedule C...you enter it on Schedule C in the box for self employed and then it flows as a deduction on the form 1040.  The deduction is limited to net income of the business.

Shirley79
Level 4

Thank you - I do understand that, but my question is... if a person has a small business and his net profit is say.... $2000, can he still claim the total Medicare premium of $1626 as the self employed insurance adjustment?

0 Cheers
Just-Lisa-Now-
Level 15
Level 15

yes.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
Shirley79
Level 4

Can I give you one more example, please?       My client (married - both over 65 - receiving medicare)  has a house cleaning business.  They have a medicare supplement.  Can she deduct her supplement premium as well as Medicare premium on the 1040 as self-employed health insurance?  If so, she can't deduct any part of her husband's premiums, can she, since he does not share in the business?

Thanks for your patience. 

0 Cheers
dbelling
Level 3

If you are self-employed, you may be eligible to deduct premiums that you pay for medical, dental and qualifying long-term care insurance coverage for yourself, your spouse and your dependents. ...

Shirley79
Level 4

I have read this information and the "may be" is what is confusing me.   

0 Cheers
Just-Lisa-Now-
Level 15
Level 15

The "may be" part I think refers to the fact that you need to have net profit on Sch C, in order to take the SEHI deduction...so while it is deductible, if you don't have profit, it won't be.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
dbelling
Level 3

Exactly profit and then an adjustment is made to arrive at AGI...your software will handle this appropriately.  Debbie

Shirley79
Level 4

Deducting both husband and wife's medicare premiums and supplemental health insurance premiums reduces the taxable income to zero.  Seems too good to be true, but I will amend their return claiming the deduction.  

0 Cheers