Taxpayer is employed and self employed in Jan and Feb with health insurance through his employer. The employer does not cover his spouse so he covers her under his employer sponsered plan for $803 per month. Starting March 1 he is laid off and goes on Cobra and continues to operate his sole proprietorship. The Cobra policy shows that his spouses coverage stikll costs $803. This says to me that her premium in Jan and Feb was not subsidized, so it is eligible for his SE health deduction. What do you think?
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I think the plan has to be established under his name or the name of his business.
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Not even close. . .
The answer is above.Originally posted by Kram BergGold View Post
Self-employed person is covered by employer insurance, therefore by the long-standing rules of SEHI during such time he is ineligible to deduct anything. (Same would also apply if he was, or could have been, covered by his wife's employer.)
The important issue is not the extra cost of his wife's/dependent's coverage, but his coverage. It is my understanding that COBRA essentially allows a (former) employee to continue the "same" insurance he had while employed, except the employer no longer pays any portion of it.
If I read your post correctly, this guy is somehow trying to deduct as SEHI the (extra) cost of covering his spouse while he was simultaneously being provided employee insurance? Ah...no!
FEComment
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Did we ever decide if the Medicare premium for the self-employed taxpayer (not the spouse) is still ok for SEHI?Comment
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IRS decided it already. Both are deductible.Originally posted by Burke View PostChEAr$,
Harlan Lunsford, EA n LAComment
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Now i get it
Even though the spouses premiums were not subsidized when the taxpayer was employed, his premiums were totally paid by the company. Since she was covered by his policy the taint of subsidy covers both of them. So her $800 premiums for two months are a Schedule A deduction.Comment
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Saw it and printed. THANKS! Self-employed TP can deduct MC, cannot deduct spouse's! And that makes sense.Originally posted by FEDUKE404 View PostComment
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Just going by the rules
You are more than welcome.Originally posted by Burke View Post
(And that is kinda what I said all along was the IRS intent for SEHI, although I got slammed here for saying such. . . . . .)
FEComment
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IRS memo re medicare parts b, c, d for self employed and spouses and dependents
Here is the reference to the IRS memo I remember:
Medicare for spouses and dependents are covered.ChEAr$,
Harlan Lunsford, EA n LAComment
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Not really
That memo is old news (and your web site for Crain's Cleveland Business is blocked to non-subscribers).Originally posted by ChEAr$ View PostHere is the reference to the IRS memo I remember:
Medicare for spouses and dependents are covered.
But you are more than welcome to hang your professional hat on it!!
Suggest you visit:
http://forum.thetaxbook.com/showthre...as-now-spoken-!!
FEComment
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The link didn't seem to make it in my last post. I read it and thought that by linking it here, we could read it; instead I see reference now to subscriber only. Sorry.
So here's the IRS chief counsel memo:
Yes, I'll hang my hat on the head lawyer.ChEAr$,
Harlan Lunsford, EA n LAComment
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