Discussion:Self-employed health insurance plan established under your business
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Discussion Forum Index --> Tax Questions --> Self-employed health insurance plan established under your business
| 19 February 2006 | |
| Pub: 535 - "The insurance plan must be established under your business." Is there a particular format or specific language that is recommended? Pub: 535 - "You may be allowed this deduction . . . . . . and you included the premium amounts in your gross income." So application looks like this: If gross income is $136,000 and insurance premiums (health and dental and long term care) are $12,000. The gross income would be increased to $148,000. This looks straight forward. Do you agree? | |
| 19 February 2006 | |
| The self employed health insurance deduction is not taken on Schedule C. Rather it is taken as an adjustment to income on page 1 of the 1040. Gross income is not increased by the amount of the deduction to be taken. | |
| 20 February 2006 | |
| There is an extremely long discussion that I started by asking essentially the same question that you asked about "established under your business". You ought to find this and read what was discussed. Taxref seemed to think you were reporting on a Schedule C vs. corp or LLC. The treatment would be very different, depending on your entity type.LJACPA 08:04, 20 February 2006 (CST) | |
| 20 February 2006 | |
| I think this might be the discussion that LJACPA is referring to: S-E health insurance deduction for S corp SH.
- Tim Doyle, TaxAlmanac Moderator 08:10, 20 February 2006 (CST) | |
| 21 February 2006 | |
| I read the discussion concerning S-corp - Wow lots of work and a great deal of thinking. Let me clarify my position: This is a sole propriator business that uses Schedule C and reports self-employed health insurance deduction on page 1 of the 1040. This is not an S corp. Pub: 535 under Self-Employed Health Insurance Deduction states, "The insurance plan must be established under your business. You may be allowed this deduction whether you paid the premiums yourself or your partnership or S corporation paid them and you included the premium amounts in your gross income. Take the deduction on line 29 of Form 1040." Taxref said: "Gross income is not increased by the amount of the deduction to be taken." What is the meaning of the language from Pub: 535 that says, " . . . . . and you included the premimum amounts in your gross income."? | |
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