Self-employed deduction for spouse's Medicare B (Oh, no, not again!)

[appelman]

Sorry to harp on this again. Has anyone found any new chapter and verse on this? The new Pub 535 is silent on it. Kiplinger says no, but that is hardly definitive.

[David1980]

http://forum.thetaxbook.com/showthre...as-now-spoken-!!

http://forum.thetaxbook.com/showthread.php?21890-Interesting-SE-Heath-Question

Some recent discussion.

[appelman]

Pub. 535 language has not changed.

The language quoted from Pub 535 does not appear to have changed since last year. Why are WE now giving it an opposite interpretation regarding a spouse's Medicare premiums?

[ChEAr$]

The language quoted from Pub 535 does not appear to have changed since last year. Why are WE now giving it an opposite interpretation regarding a spouse's Medicare premiums?

Because the IRS minion on Constitution avenue who was in charge of editing the publication didn't know about or have access to the IRS chief counsels memo quoted above by Bees.

Something about "right hand not knowing what the left hand is doing." Happens in all organizations, large or small.

[FEDUKE404]

Parallel universe again

Because the IRS minion on Constitution avenue who was in charge of editing the publication didn't know about or have access to the IRS chief counsels memo quoted above by Bees.

Something about "right hand not knowing what the left hand is doing." Happens in all organizations, large or small.

**OR** the chief counsel (more likely his clerk) completely dropped the ball by not knowing the statutory rules as written.

Yeah, there are some real "intellectuals" in Washington. Maybe the Chief Counsel was just relying on Turbo Tax for his advice??

FE

[appelman]

I seem to recall...

That the last time everyone pooh-poohed a CCA, the whole state of California ended up with egg on its face in the great real estate fiasco of 2012!

[Bees Knees]

**OR** the chief counsel (more likely his clerk) completely dropped the ball by not knowing the statutory rules as written.

Interesting that this particular Chief Counsel is suspect, yet the one from 2005 that said sole props can take the deduction even if it is in their personal name is not questioned.

What’s the difference? The 2005 ruling goes against the statutory language as well. And what makes an IRS publication any more authoritative than a Chief Counsel ruling?

[ChEAr$]

(snipped

What’s the difference? The 2005 ruling goes against the statutory language as well. And what makes an IRS publication any more authoritative than a Chief Counsel ruling?

I think it's always been an "act of faith" among us that publications are not THE law and relying on them solely is
rather risky.

Didn't the IRS itself say so one time?

[joanmcq]

It really hasn't changed. Sole props can take the deduction for themselves. If their spouses are also self employed, the spouse can deduct theirs. If spouse is not SE, their medical is on Sch. A.

'Nuff said.

[ddoshan]

I was in the group that felt that non self emloyed spouses Medicare premiums should not be included. I submitted the question to our usually very dependable tax research department and their answer was yes, a taxpayers spouses Medicare premiums may be used to calculate the self employed taxpayers health insurance deduction. ?????

[Bees Knees]

I submitted the question to our usually very dependable tax research department and their answer was yes, a taxpayers spouses Medicare premiums may be used to calculate the self employed taxpayers health insurance deduction. ?????

Once again, I will quote the language written in the IRS letter ruling.

CCA 201228037, dated May 01, 2012 says in part:

If all the requirements of section 162(l) are satisfied, Medicare premiums may be
deducted under section 162(l) for coverage of the self-employed individual’s
spouse, dependent or a child (as defined in section 152(f)(1) who as of the end of
the taxable year has not attained age 27).

To date, IRS has yet to issue any guidance saying that language from the letter ruling is null and void. It is impossible for an individual to have Medicare coverage that covers anyone other than himself or herself. Thus, either this letter ruling is in error, or it is saying that a spouse of a self employed individual can include his or her Medicare coverage in the calculation of the self-employed individual's health insurance deduction.