S E Health...Eligible?

[Black Bart]

I want to take SE health deduction for client and need an opinion.

Schedule C guy pays Blue Cross $3K, has enough net to cover that and get this year's "double credit" (SE+Income Tax). Wife's on his policy. Problem is, her employer offers a policy which would cover both and she could take it and there's that clause: "...any months you were eligible to participate in your spouse's group health insurance through your or your spouse's employer...blah, blah, blah..."

In a Clintonian twist on words, what about this? She's doesn't have a policy (although that's a voluntary -- for whatever reason -- decision), so he can't be "eligible" to be on a policy that doesn't exist...can he?

Or have I been doing this kind of work too long and am going over the edge while grasping at straws....

[Snaggletooth]

Take It

Bart, just shooting from the hip...

The fact that he is covered under her policy doesn't break any criteria for deductibility of his own insurance, even if she is covered under his.

I would say this family is extremely fortunate to have this coverage.

[erchess]

I think he can't take se health ins

The key is that his wife could have bought coverage for herself and him through her employer subsidized plan. I think the idea is that by and large people who pass up such plans are for some reason able to get a better deal for themselves and their families than the employer sponsored plan and therefore do not need a subsidy to persuade them to do so.

So does her W-2 have the pension plan box checked? If so, I'm sure I'm right here and if not I'm much less certain.

Seems to me you could do the daggum disclosure form and tell the govmint what you are doing and why and at least there will be no fraud penalties for your client nor any penalties for you. I don't know how to estimate the increase in the probability the return will be audited but that may be only a small increase.

It looks to me as though the quote from BB says you are wrong Snags but I have to agree that I don't have any knowledge of such a requirement other than what is in this thread.

[oceanlovin'ea]

Erchess, I don't think the retirement box being checked has anything to do with health insurance does it?

Linda, EA

[BP.]

She's doesn't have a policy

The fact that he is covered under her policy

Bart's quote says he isn't

doesn't break any criteria for deductibility of his own insurance

It would if he were

does her W-2 have the pension plan box checked? If so, I'm sure I'm right here

Relevant?

Have look at pub 535 for discussion of original question. Also TTB 5-10. Even without participation, looks like eligibility prohibits the deduction. Doesn't say you have to have a "policy" just "eligibilty."