Self-Employed Health Insurance Deduction


C

Cathy

Are the Medicare premiums that are withheld from a
self-employed individual's social security eligible for the
SE Health Insurance Deduction on Form 1040? OR, does it
preclude you from taking the SE Health Insurance deduction?
I am presuming that income is sufficient to allow this
deduction.
 
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H

Herb Smith

Cathy said:
Are the Medicare premiums that are withheld from a
self-employed individual's social security eligible for the
SE Health Insurance Deduction on Form 1040?
Are you talking about the Medicare A taxes you pay as part
of your SE tax calculation or the Medicare B premiums you
pay after you turn 65? No to Medicare A, yes to Medicare B
if you have sufficient SE income from your business. Any
remaining premium can be claimed as a medical expense (over
7.5% of AGI) on Schedule A.
OR, does it
preclude you from taking the SE Health Insurance deduction?
I am presuming that income is sufficient to allow this
deduction.
Not to my knowledge.
 
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E

ed

Yes, any premiums for your family you pay, up to the amount
of net income from one business, are deductible, unless they
are subsidized by an employer. Your business' "insurance
plan" is to pay premiums. \Why would our legislators
discriminate against the elderly? ed
 
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P

Paul Thomas, CPA

Cathy said:
Are the Medicare premiums that are withheld from a
self-employed individual's social security eligible for the
SE Health Insurance Deduction on Form 1040?
No. But you get to deduct 1/2 of the self-employment tax
on the front of the 1040.
OR, does it preclude you from taking the SE Health
Insurance deduction?
No. You have to have paid in to a health insurance plan
(ie: make premium payments) and be self-employed (or a
greater than 2% shareholder of an "S" corporation or partner
in a partnership)......
I am presuming that income is sufficient to allow this
deduction.
...... and deductions would be limited to profits from that
business.
 
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