Just want to be sure I'm right, the SE has a deduction for the insurance now, my question is does the amount also go on line 29 of 1040. My first response was no, can't get twice, but now I see that it makes sense to put it on both, and appears to be "the amount from line 29" for the IRS to see that it should be deducted on SE. Am I right with both?
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This Year Only
SE Health Insurance is a deduction from income tax by virtue of being an "adjustment." However, for 2010 only, it is also a deduction for SE tax. I tell my clients to enjoy the benefit.
It is NOT a double deduction. Remember that Self-employment income (C, F, etc.) is taxed on TWO DIFFERENT LEVELS, not only for income tax but also for Self-Employment tax. So the SE Health Insurance just removes the taxable base from both levels of taxation. There is no "double benefit" except as described. Certainly, not a "double-dipping" deduction.
Alas, when 2011 comes, SE tax will no longer allow the SE Health Insurance to be removed from the SE base. And for 2009 and previous years this was the case as well. -
Thanks so much, just wanted to be sure I was ok with taking on the 1040 and on SE!Comment
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New SE health ins ded
Where do you take the new SE health ins deduction?
Thanks,
BobbyComment
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Line 29 as in previous years and on sch se to reduce the self employment tax.Originally posted by Bobby View PostComment
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