Discussion:Self-employed Health Insurance
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| Revision as of 21:52, 6 September 2009 Philiplaucpa (Talk | contribs) (Unfortunately, y) ← Previous diff |
Revision as of 22:34, 6 September 2009 Riley2 (Talk | contribs) (I missed the par) Next diff → |
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| {{ForumReplyPost|UserID=Philiplaucpa|Date=6 September 2009|Text=Unfortunately, your client can't deduct it because of (l)(2)(b). However, there is a special rule for long-term care plan. If your client's spouse's company does not provide long-term care plan, the taxpayer may still be able to take the deduction if he pay for the long-term care plan.}} | {{ForumReplyPost|UserID=Philiplaucpa|Date=6 September 2009|Text=Unfortunately, your client can't deduct it because of (l)(2)(b). However, there is a special rule for long-term care plan. If your client's spouse's company does not provide long-term care plan, the taxpayer may still be able to take the deduction if he pay for the long-term care plan.}} | ||
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| + | {{ForumReplyPost|UserID=Riley2|Date=6 September 2009|Text=I missed the part about the Sec. 125 plan. Obviously, the taxpayer cannot claim a deduction for employer paid premiums.}} | ||
Revision as of 22:34, 6 September 2009
Discussion Forum Index --> Basic Tax Questions --> Self-employed Health Insurance
Discussion Forum Index --> Tax Questions --> Self-employed Health Insurance
| 5 September 2009 | |
| Client is self-employed. Spouse is an employee who has the health insurance coverage through her employer for the entire family. Spouse pays 20% of the insurance premium from her Section 125 plan.
I checked Section 162 which said self-employed taxpayers are not allowed to deduct health care insurance premiums if the taxpayer is eligible to participate in an employer-provided health plan. This restriction applies regardless of whether the health plan is sponsored by either an employer of the taxpayer or an employer of the taxpayer's spouse. It also said the health has to be established under the name of the taxpayer or the business. In this case my client participated in the health plan through his spouse. It seems to me that the premium is deductible. However, the plan is not established under the name of the taxpayer or the business. Can taxpayer deduct the 20% premium? | |
| 5 September 2009 | |
| I believe this would not be deductible at all. The spouse is on a group plan with her employer-this makes them ineligible even if your client paid 100% of the premium. | |
| 5 September 2009 | |
| Since the spouse is eligible for an employer subsidy, it would seem that the deduction for the 20% for spousal coverage would be disallowed. | |
Actionbsns (talk|edits) said: | 5 September 2009 |
| Isn't the premium paid by the taxpayer deductible on Schedule A subject to limitations? | |
| 6 September 2009 | |
| Sounds too simple to me. The Section 125 is a pre-tax use of the plan benefits so the tax deduction has already been taken. The Sub-S info is all moot and there is no connection. Any additional Sch. A deduction would be double-dipping. | |
Actionbsns (talk|edits) said: | 6 September 2009 |
| I didn't catch that about the Section125 plan. You're right JD, the deduction has already been taken and the W-2 will reflect that. No additional deduction would be allowed. | |
Philiplaucpa (talk|edits) said: | 6 September 2009 |
| Unfortunately, your client can't deduct it because of (l)(2)(b). However, there is a special rule for long-term care plan. If your client's spouse's company does not provide long-term care plan, the taxpayer may still be able to take the deduction if he pay for the long-term care plan. | |
| 6 September 2009 | |
| I missed the part about the Sec. 125 plan. Obviously, the taxpayer cannot claim a deduction for employer paid premiums. | |
