Discussion:I know, discussed infinitely, but a self-employed health insurance question . . .
From TaxAlmanac
Discussion Forum Index --> Basic Tax Questions --> I know, discussed infinitely, but a self-employed health insurance question . . .
Discussion Forum Index --> Tax Questions --> I know, discussed infinitely, but a self-employed health insurance question . . .
| 30 September 2009 | |
| I have read many of the discussions.
Just a quick, easy opinion, and I know it is a grey area. Taxpayer is self-employed. He depends on Medicare for health insurance. But forget the Medicare premium for now, his wife has a health insurance policy IN HER NAME for her and their daughter. The husband pays the premium. Would you take this above the line? The policy is not in the name of the business, or the sole proprietor as an individual, but they are premiums for his spouse and dependent. I recently read a great article by The Wandering Tax Pro that suggested, why not? It doesn't say NO to this anywhere in the code or regs . . . | |
Michaelstar (talk|edits) said: | 30 September 2009 |
| NO | |
| 30 September 2009 | |
| For my own return I do this - and will do it for any client so long as he/she understands the ambiguity.
I also intend to take our Part B and Part D, as well as LTC insurance premiums. | |
| 30 September 2009 | |
| In a perfect world, you could hire the wife, and write off the health insurance premiums on the Schedule C. And while you were at it, hire the child, and pay her $17,200. If under 18, her wages are not subject to FICA. Have her contribute $11,500 to a SIMPLE IRA. This brings her taxable income down to $5,700 (standard deduction amount), and she owes zero on her tax return, and the client has a deduction of $17,200 for wages on his Schedule C. Now wouldn't it be nice if it was so easy. | |
| 30 September 2009 | |
| Draft a document making the company's medical insurance plan the combination of the Medicare plan and the spouses policy. Ouila! It is all now the company's plan. | |
| 30 September 2009 | |
| The company "plan" is to pay the family's health insurance premiums. Do not limit it in your "plan" resolution. Also pay your Part B, Suplemental. Part D etc. They are all part of your plan. See Webster Plan: a course of action, not an insurance policy. Of course, no deal if wife's policy is from an employer.
ed | |
Harry Boscoe (talk|edits) said: | 1 October 2009 |
| "Ouila"? Dontcha mean "Walla" like the French say? | |
