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Level 4
March 3, 2024
Question

Self employed health insurance deduction

  • March 3, 2024
  • 3 replies
  • 18 views

Hi. Client MFJ both  retired and collecting SS and paying medicare. Husband is  self employed carpenter. He has government pension. Continued his health insurance in retirement. Premiums deducted post tax from monthly pension.  I know I can deduct medicare premiums for both  he and his wife from the SE income (to the extent of profit) but other health premiums seems to be "grey". Law says can't deduct employer subsidized premiums, but he has no employer. Also would think the reason for that would be that employee premiums are already pre-tax.  Any one have any ideas/ opinions about deducting his monthly premiums as a retiree? Thanks!

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3 replies

Just-Lisa-Now-
Intuit Community Champion
March 4, 2024

SEHI rules are pretty clear that the policy needs to be in the name of the business or the name of the self employed person, a government pension health insurance is neither of those.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
billr617Author
Level 4
March 5, 2024

Hi Lisa,

   Thank you for the reply. The policy is in the persons name -same group  coverage as when working and offered in retirement - just has to pay higher premiums that are not pre tax. Seems to be just like medicare  premium which can be deducted against the self employment  income or am I not understanding the deduction rules or are they different for medicare. Thanks!

Just-Lisa-Now-
Intuit Community Champion
March 5, 2024

Its through a group plan with his ex-employer, its not in his name or the name of his self employed business.

Medicare premiums are based on that individual person's income, I think that's why were allowed to include those as SEHI.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
BobKamman
Level 15
March 5, 2024

What would you do with this?

Wife is self-employed.  Husband is retired and pays Medicare B ($1,979).  He's retired military so qualifies for Tri-Care.  So does she, but must pay an annual "enrollment fee" of about $600.  

Skylane
Intuit Community Champion
March 6, 2024

@billr617    Not Deductible 

If at first you don’t succeed…..find a workaround