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    S E Health Insurance Deduction

    I remember this issue being quite the argument back at that other un-named message board.

    According to Kiplinger Tax Letter:

    "Good news for self-employeds on deducting medical insurance: The policy needn't be bought in the firm's name to be deductible, the Service privately rules. Buying it in the proprietor's name is OK."


    My apologies if this has been discussed here already, but I am glad to at last have an official reference for this issue.

    Safire
    Last edited by Safire; 07-06-2005, 02:29 PM.

    #2
    Private ruling

    Kiplinger isn't official so you must mean the private ruling. How could you use this ruling since it applies only to a single taxpayer?

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      #3
      SE Health Insurance

      Click on the Updates Tab at the top of the page. There is a discussion of the topic there.

      Comment


        #4
        jainen

        Yes, I was speaking of the letter ruling and although I realize that I cannot quote that private letter ruling for my own situation, it serves as a pretty good idea of how my situation would be ruled on, if in question.

        I don't know if you were part of the ongoing discussions about the topic, but there were some pretty heated arguments over the issue awhile back.




        John, thank you for pointing me to that update.

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          #5
          Health Ins Deduct ion Self Employed and Medicare

          It has been said that Medicare Part B costs can not be included in the health Insurance deduction for the self employed, and if that is the case what about the Medicare supplemental policy that the self employed business owner might also pay for?

          There are a number of self employed taxpayers over age 65 that have medicare, part B that they pay for, and also are paying for additional supplemental insurance, either an HMO plan or PPO plan.

          Can someone give the regulation and/or the reasoning behind this? What is an allowed deduction for these self employed taxpayers with this type of health insurance costs?

          Sandy
          Last edited by S T; 07-08-2005, 04:13 AM.

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            #6
            Doesn't Fly

            S T, I wouldn't think payments withheld for Medicare (SS recipients) would qualify as private insurance, and thus probably outside the scope of what was intended when the self-employed medical deduction was created a few years ago.

            I am, however, delighted that a chord of reason has been struck by eliminating the need for the policy to be in the name of the business itself. But stretching this to include medicare deductibles on social security payments is quite a stretch...

            Regards, Ron J.

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