Discussion:Self Employed Health Insurance 2011-12?

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Discussion Forum Index --> Tax Questions --> Self Employed Health Insurance 2011-12?

Jake (talk|edits) said:

18 December 2010
Self-employed persons are able to deduct their health insurance premiums as a business expense that reduces their self-employment tax and their income tax for the year 2010.

For 2011 and later years, the health insurance deduction would go back to being deducted only against the income tax, unless Congress decided to extend this particular tax break.

Was this favorable 2010 treatment of self-employed health insurance premiums extended as part of the recently enacted tax bill?

Belle (talk|edits) said:

December 18, 2010
See if it's in here....

[1]

Belle (talk|edits) said:

December 18, 2010
Solomon's link in this discussion might be better..

Discussion:SS tax credit & SE tax

Jake (talk|edits) said:

19 December 2010
My question was not about the 2% ss tax reduction.

Belle (talk|edits) said:

December 19, 2010
Solomon's link is to the entire bill that passed. As is mine. I suspect the answer is in there (once I find time to read it...after Christmas baking).

MWPXYZ (talk|edits) said:

19 December 2010
It was part of a bill passed earlier this year, but I cannot remember which one.

Solomon (talk|edits) said:

19 December 2010
PL 111-240

"SEC. 2042. DEDUCTION FOR HEALTH INSURANCE COSTS IN COMPUTING SELF-EMPLOYMENT TAXES IN 2010.

(a) IN GENERAL.—Paragraph (4) of section 162(l) of the Internal Revenue Code of 1986 is amended by inserting ‘‘for taxable years beginning before January 1, 2010, or after December 31, 2010’’ before the period.

(b) EFFECTIVE DATE.—The amendments made by this section shall apply to taxable years beginning after December 31, 2009."

This was not included in HR 4853.

Jake (talk|edits) said:

20 December 2010
One wonders how and why this one year change in the treatment of self employed health insurance expenses ever got put in the tax law.

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