Discussion:Self-employed health insurance for schedule C

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Discussion Forum Index --> Tax Questions --> Self-employed health insurance for schedule C


Www.cpa1.biz (talk|edits) said:

27 January 2007
Almanacers,

I just wanted to clarify something. I was reading in Publication 535 about self-employed health insurance deduction. Does the health insurance have to me in the company's name or can it be in the individual's name? If this is true, what if the company just uses a DBA and still shows their SSN on the schedule C but has the insurance in their name. Also, if it is not in their name does it just go to the SCH A?

Thanks,

Bj

Deback (talk|edits) said:

January 27, 2007
1. No, yes

2. Yes

3. No, unless their spouse is covered by health insurance with his or her employer.

Www.cpa1.biz (talk|edits) said:

27 January 2007
Thanks Deback,

Your help is always valued.

bj

Deback (talk|edits) said:

January 27, 2007
I believe that a sole-proprietor's health insurance plan is usually in their own name and not the company name. My plan is in my own name. It is an individual policy and only covers the owner of my company (me). I deduct the premiums on Form 1040, under Adjustments to Income, but I enter the amount on the Sch C in the field at the left near the Insurance line. (I'm upstairs and don't have the tax program open up here, so I don't remember the line numbers.)

But if I was married, and if my spouse (and I) were covered by a health insurance plan through his employer, I would not be able to deduct self-employed health ins premiums. In that case, the premiums would be deductible on Sch A, under Medical.

If a Sch C company has employees, then I deduct the employees' premiums on Sch C (when paid by the employer) and the owner's premiums on the 1040 form.

Death&Taxes (talk|edits) said:

28 January 2007
Agree 100%, and note that if married and you were giving spouse money toward his employer's insurance, I don't think that qualifies as self-employed insurance because it is not in your name.

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