Self Employed Health Insurance

[neallove]

I just came from an IRS Audit and they stated that for self employed health insurance to be deducted the policy has to be in the name of the business.

This is the official position with no exceptions

[newbie]

http://www.irs.gov/publications/p535/ch06.html#en_US_publink1000144786

-The insurance plan must be established under your business.

For self-employed individuals filing a Schedule C, C-EZ, or F, the policy can be either in the name of the business or in the name of the individual.

[Maribeth]

And here are the guidelines for an SCorp.

Maribeth

[FEDUKE404]

Sch C policy need not be in name of the business

This dead horse has previously been beaten to a fine powder on these boards.

(just look at "similar threads" below......)

Regardless of the "official position with no exceptions" comment, a self-employed individual filing a Schedule C does not need to have the policy owner shown as "Bob's Tax Service."

Also, if Bob is over 65 YOA, Medicare probably will not issue such an ID card anyway

FE

[newbie]

Well, Neallove, I don't mind you posting redundant questions. It's like a refresher course, and I am in need of constant refreshments. Keep posting.

[S T]

I agree

It is a very confusing issue relating to self employed (Schecule C) S Corps and let us not leave out Partnerships - Just had one of those that we are trying to sort out for Health Care.

So the more postings the better.

I have stuggled with this issue for a couple of years.

Maybe one of these days we will all grasp the confusing concept of the Government and the IRS rules and regulations. It would be nice if they would just adopt the same rules and regulations for anyone that was in business regardless of entity.

Maribeth and Newbie were so generous in posting their references.

Thank you,

Sandy

[Skeemo]

Medicare

Refresh me. Do medicare premiums and medicare suplement premiums qualify for the SEHI for Sch. C filers?

[FEDUKE404]

Medicare OK

Refresh me. Do medicare premiums and medicare suplement premiums qualify for the SEHI for Sch. C filers?

Most people say "yes" for the individual involved, i.e. Sch C filer cannot use spouse's Medicare premiums.

Caveat of course is that the individual meets all of the other rules regarding coverage limitations, such as "......cannot be covered by......." etc.

FE

[newbie]

I don't know.......

Refresh me. Do medicare premiums and medicare suplement premiums qualify for the SEHI for Sch. C filers?

Check out these links for some interesting discussion:

http://www.thetaxbook.com/forums/showthread.php?t=242&page=1&pp=15&highlight=Claudia

http://www.thetaxbook.com/forums/newreply.php?do=newreply&p=12958

[Black Bart]

Thanx newbie,

Check out these links for some interesting discussion:

http://www.thetaxbook.com/forums/showthread.php?t=242&page=1&pp=15&highlight=Claudia

http://www.thetaxbook.com/forums/new...wreply&p=12958

You are, as S T said, a good sort and a good sport; not to mention handy as a pocket on a shirt with your links. To give FE credit, the expired horse had been ground to a fine talcum powder, but he/we/she seem to agree it's never too late to hash things out with new viewpoints.

Your first link is the old thread (a good, thorough analysis) I remembered (didn't realize it was back in '05) and matched the Abominable Beaujolais (fer) with Bees Knees (agin) re deducting Med B as SE health insurance. Nobody won that particular debate, but I was thinkin' Bees slugged it out again with new opponents a couple of years ago -- also a draw, I believe.

Wonder if there's any new development on this or if IRS is still not clarifying and some are taking a shot-hoping for the best? I've considered it, but haven't yet deducted it.

WWBD (What would Bees do)? Or maybe WW-NYEA (our other resident expert)?

[newbie]

.... not to mention handy as a pocket on a shirt with your links.

My goodness, I'm laughing so hard. Thanks for the compliment.