Discussion:Self employed, wife an employee

From TaxAlmanac, A Free Online Resource for Tax Professionals
Note: You are using this website at your own risk, subject to our Disclaimer and Website Use and Contribution Terms.

From TaxAlmanac

Jump to: navigation, search

Discussion Forum Index --> Tax Questions --> Self employed, wife an employee


Schenckdmm (talk|edits) said:

2 May 2014
Client owns real estate business as LLC and employs his wife. He currently buys insurance himself and wife is on his policy. He got the self-employed health insurance deduction on his 1040.

I'm not clear about this but was wondering, instead of him buying his own insurance, could/would he be able to buy insurance for her as an employee then be on her insurance?

If so, would he be able to take the self-employed health insurance deduction on their 1040 and possibly be eligible for the small business health care credit as well or am I really missing it?

Jwebbb (talk|edits) said:

2 May 2014
See link below. Spouses are excluded for the credit.

http://www.journalofaccountancy.com/Web/20103612.htm

Julian

Kbairtax (talk|edits) said:

3 May 2014
Agree with Jwebbb. I do this in my practice. My husband is my employee....and yes he does work year round and gets paid each week and we document his hours just like a regular employee. I have a plan for him and thereby I get coverage since I am his spouse. So instead of taking the self-employed health insurance deduction which does not reduce SE tax, I take it as an employee benefit. But I cannot qualify for the credit since he is a spouse. Just getting it exempt from SE tax is good enough for me.

Now they can also have an HRA.....look into that as well.

Schenckdmm (talk|edits) said:

6 May 2014
Great, thanks for your help.

To join in on this discussion, you must first log in.
Personal tools