SEHID Question?

[ddoshan]

First for me I guess. Client self employed and makes quite a lot. I did take his Medicare and other health insurance premium as a deduction. I also included his wife's Medicare premium. But I did not include his wife's other health insurance policy she has which was quite expensive as part of the SEHID.

If her Medicare premiums are allowed (know there is some disagreement) then would her other health premiums also be allowed to be included in his SEHID? Common sense would seem to indicate yes but I wasn't sure so I told the client I would double check and amend his return later if allowed.

Will be sending in this question to our experts later.

[Burke]

Her health insurance deductions, Medicare or not, are not deductible as SEHI since they don't meet the criteria, unless she is a joint owner of the business. They go to Sche A.

[ddoshan]

I tended to lean that way also until that private letter ruling which seemed to indicate otherwise. I did submit the question as to deducting the wifes Medicare premium also to our Tax Research Dept. and their answer was yes, you can include her Medicare premium in computing the SEHID of the self employed spouse. So that led to my question as to if you could include other health insurance premiums she paid.

[FEDUKE404]

Here we go again

Burke is likely much closer to the truth on this topic than your Tax Research Dept.

But, yes, there is "some disagreement" on the topic.

Your own "common sense" answer that you could, being consistent, potentially claim the WIFE'S Medicare premiums and private insurance premiums shows how messed up some of the explanations have been.

Many/most people on these boards now feel that only the husband's own policy (which could include his wife/dependents) and the husband's own Medicare premiums (also "his" policy) are what would qualify for the SEHI for the husband's Schedule C. "Her" premiums/policies would automatically be excluded.

Bottom line: It's your signature as the preparer.

Pax vobiscum.

FE

[ddoshan]

Well ....I have some trouble getting a handle on this myself but ... according to our crack research dept they advised that not only could the wife's Medicare premium be included in the Husbands SEHID but so could the expensive supplemental policy she has.

[FEDUKE404]

Outside advice

Well ....I have some trouble getting a handle on this myself but ... according to our crack research dept they advised that not only could the wife's Medicare premium be included in the Husbands SEHID but so could the expensive supplemental policy she has.

You might wish to suggest they sign your clients' tax returns . . . .

FE

[ddoshan]

You might wish to suggest they sign your clients' tax returns . . . .


Maybe not a bad idea. I do feel a little uncomfortable with this. But I suspect they get paid a lot more than I do to do just that .. research. Normally very spot on and good advice.