Self employed Health Insurance(Another question)

[Redneck]

Client is a retired postal employee. Health insurance is through his retirement but is not pre taxed. Now he is self employed and also on medicare. Sch C shows a profit. Is the premium for the health insurance and medicare a deductible sch c item as self employed health ins. Any help is appreciated.

[FEDUKE404]

SEHI should be OK

Client is a retired postal employee. Health insurance is through his retirement but is not pre taxed. Now he is self employed and also on medicare. Sch C shows a profit. Is the premium for the health insurance and medicare a deductible sch c item as self employed health ins. Any help is appreciated.

Are you asking about a Schedule C expense or about the Form 1040, SEHI adjustment to income?

IMPORTANT: "You cannot take the [SEHI] deduction for any month you were eligible to participate in any employer (including your spouse's) subsidized health plan at any time during that month, even if you did not actually participate."

**IF** your facts are correct, and this person could not be included on the employers policy of his/her spouse, then it is my interpretation that both the medical insurance premiums paid to the former employer and the Medicare B premiums could be used as a SEHI adjustment, subject of course to the usual dollar limitations.

FE

[Kram BergGold]

Are You Sure?

Clearly the medicare qualifies for SEHI deduction on page 1 of 1040. To me, the postal workers health insurance is highly subsidized by his former employer or employer's pension paln and should not count. This is just my opinion.

[FEDUKE404]

NO employer exists

Clearly the medicare qualifies for SEHI deduction on page 1 of 1040. To me, the postal workers health insurance is highly subsidized by his former employer or employer's pension paln and should not count. This is just my opinion.

Well, reasonably.

I now have exactly the same medical insurance (as a retiree) that I had through my previous employer. (Whether it was "subsidized" or anything similar, I do not really know.)

While an employee, the coverage was pre-tax and was never deducted either as SEHI -- even if it had NOT been pre-tax -- (since I had employee medical coverage available) or -- even if it had NOT been pre-tax -- as a Schedule A deduction (ye olde 7.5% AGI floor).

As a retiree, the way I read things is that I am now NOT covered by an employer's medical insurance plan (since I have no employer!) and the monthly premiums I **PAY** (not necessarily the "cost" of the coverage) are certainly eligible for SEHI considerations.

Right or wrongly, I hang my hat on the distinction that I am currently NOT covered by any employer medical insurance plan and thus can claim, within the rules of the SEHI, what I actually pay each month.

Perhaps someone has further experience with this aspect of the SEHI and can elaborate?

FE

[appelman]

I agree with Feduke.

He's not an employee; it's not an employer-provided health plan. It's SEHI.

[Redneck]

Thanks

Thanks for the response.