Discussion:Self Employed Health Insurance Deduction 2

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Discussion Forum Index --> Advanced Tax Questions --> Self Employed Health Insurance Deduction 2


Discussion Forum Index --> Tax Questions --> Self Employed Health Insurance Deduction 2

Noobie (talk|edits) said:

21 March 2014
Ok, I have a client who is self employed (real estate agent). Client gets their health insurance through their retirement plan from the state. Their retirement is set up so that they have a subsidy of about 2k pre-tax. Then client gets taxed, and pays the health insurance 8k post tax. Would the difference between the pre-tax amount, and the health insurance amount 6k be deductible as self employed health insurance premiums on the Schedule C which makes it an above the line deduction? And yes, they have a profit higher than the health insurance premium. Thanks in advance for your help.

Ckenefick (talk|edits) said:

21 March 2014
on the Schedule C which makes it an above the line deduction?

It definitely wouldn't be there.

they have a higher profit

What do you mean by "they?"

Noobie (talk|edits) said:

21 March 2014
Hi Chris,

Sorry, They=client. Why would we not be able to take the deduction on the Schedule C?

Sean

Ckenefick (talk|edits) said:

21 March 2014
A Sch C is for a "sole" proprietorship, or something taxed as one. "Sole" means one, as in one owner. So, I don't see how "they" could have a profit on a single Schedule C. Maybe you're implying there's more than one Schedule C. And maybe you're saying one spouse is a Schedule C employee, and hence, you wanting to take this deduction directly on Sch C.

Noobie (talk|edits) said:

21 March 2014
They is singular in this case. Sorry, it was a mix of public school, and moving around that gave me poor grammar skills. :,(

Noobie (talk|edits) said:

21 March 2014
One single taxpayer, the client, files their realtor activities as a sch c business.

Jeff-Ohio (talk|edits) said:

21 March 2014
Above the line deduction meaning a line 29 deduction - as CK said, def not on Schedule C

Spell Czech (talk|edits) said:

22 March 2014
A person's only got themself these days.

EADave (talk|edits) said:

22 March 2014
Terrell Owens, "I love me some me." Why do the Cowboys have to pick some of the lowest low brows for their receivers?

And "It's deja vu all over again" with that Dez Bryant fella, "Dez Bryant: "Whoever passes up on me, it's over with."

That's why they say money can't buy everything. Wait, who said that?

HurstCPA (talk|edits) said:

22 March 2014
Wouldn't this be a subsidized plan and so deduction is only allowed on Schd A. The Florida retirement statements generally state "health insurance subsidy tax exclusion".

I would have thought no deduction on line 29 at all as long as they are eligible to participate in a subsidized plan maintained by their employer.

Another question, is this considered an employer since coming from retirement?

Ckenefick (talk|edits) said:

22 March 2014
Who issues the taxpayer's W2 with respect to taxpayer's W2 employment?

Doug M (talk|edits) said:

22 March 2014
Medicare is eligible as SEHI.........

Noobie (talk|edits) said:

25 March 2014
There is no W2 income. Just 1099 self employment income. I have the same questions as Hurst as well.

Marcilio (talk|edits) said:

25 March 2014
HurstCPA is right. SEHI that is subsidized can only be deducted on Sch A.

Ckenefick (talk|edits) said:

25 March 2014
There is no W2 income.

Then that means there is no employer.

Jake (talk|edits) said:

10 April 2014
If SEHI can only be on Sch A then why would Part B and D be eligible for SEHI adjustment to income. You are confusing the provision that you cannot deduct if you are eligible for an employer subsidized plan. Part B is not an employer plan.

Jake (talk|edits) said:

10 April 2014
Also - a subsidized retirement health insurance plan would also not likely be an "employer plan".

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