SE Health Ins Deduction

[DaveinTexas]

How ridiculous are the rules that govern this deduction?

From the Worksheet: Do not include payments for any month you were eligible to participate in a health plan subsidized by your or your spouse's employer.

For one thing, you are your own employer so that's just stupid. Second of all, why in the world would anyone pay for a non employer subsidized health insurance plan----to throw their money away?

Seriously, if the IRS ever challenged this deduction, how in the world could you prove to them that you were not eligible to participate in your spouse's plan subsidized by her employer?

Has anyone ever seen a challenge like this?

Why do I keep asking questions?

[veritas]

For some reason those that write the rules and the IRS hate the idea of a self employed person getting the same benefits they expect for themselves.

[KJ Judd]

I agree wholeheartedly. I have a self-employed client who's spouse is eligible for employer "subsidized" insurance but still takes out a high deductible plan.

Why, you ask? The subsidy is only $50/mo and the premium cost of the cadillac health insurance plan is $850+ month. The high deductible plan purchased individually runs $300/mo plus HSA of $5000/yr and you are still less than the cost of participating in employer provided insurance. And if you don't use the full $5000 HSA contribution is carries over!

I guess I shouldn't apply logic to tax law.