Announcement

Collapse
No announcement yet.

2010 Self Empl Health Ins

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    2010 Self Empl Health Ins

    Taxpayer has 1100.00 on a 1099 for delivering cars. Other than that only social security income. Can taxpayer deduct medicare premiums 1156.00 and pay no se tax this year. Alos qualifies for the making work pay credit, so he actually has a refund where normally he would owe the se tax.


    Does that sound correct?

    #2
    Yeah

    Yeah, it does sound right, and there was some weird thing with ATX, and you had to use the long Sch SE earlier in the year.

    And, I will say, I hate these "one year only" things, like this and adding property tax to SD last year. Makes it tough to explain why refund is less next time.
    If you loan someone $20 and never see them again, it was probably worth it.

    Comment


      #3
      Originally posted by gman View Post
      Taxpayer has 1100.00 on a 1099 for delivering cars. Other than that only social security income. Can taxpayer deduct medicare premiums 1156.00 and pay no se tax this year. Alos qualifies for the making work pay credit, so he actually has a refund where normally he would owe the se tax.


      Does that sound correct?
      I'm not sure about deducting Medicare premiums as SEHI; there's been much debate on this issue and maybe someone can chime in on this subject. My concern is taking the deduction for a full year's worth of premiums when the taxpayer may have only worked 1 or 2 months at this job.

      I would deduct only the premiums paid during the taxpayer's participation in this activity. That's my 2 cents.
      Circular 230 Disclosure:

      Don't even think about using the information in this message!

      Comment


        #4
        I would take the deduction if the work meets the criteria for business income, regular, continuous and substantial. We would be required to complete Schedule C if it meets these standards so I see no reason to not apply the SEHI to this income.

        If it does not meet the criteria for business income (type income we would normally include on Line 21) then SEHI would not apply.

        Comment

        Working...
        X