Does the health insurance coverage of a self-employed person has to be placed under a business name before it can be an above the line deduction on line 28 of Form 1040? What about if he is a sole-proprietor and the policy is under his own name? If I remember correctly, an insurance agent has explained to me before that a health policy cannot be placed under the business name unless the business has employee(s).
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No ... it does not have to be in the business name. -
Thank you.Originally posted by ddoshan View Post
What threw me off is that my tax program says "payment for health policy established under the business". So if a health policy is placed under the sole proprietor's name, how can it be established that it is "under the business"?Comment
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Not sure other than the IRS after many years of controversy defined it as such. The individual is the business.Comment
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Thank you again. Do you have the source that the IRS defined it as such? I want to have something to fall back on in case the deduction got challenged in the future.Originally posted by ddoshan View PostComment
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Instructions
The instructions for Form 1040 Line 29 are a starting point:
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