Last word on SE Health

[Kram BergGold]

As a wrote previously, i believe SE Health applies to health insurance policies in the name of a spouse, including Medicare B and D. To that end I amended our 2013 tax return to claim my spouse's Medicare B, D and Medex. I was very specific and clear as to what I was claiming. Today we received our refund. I will now be amending 2013 and 2014 client returns where I did not claim these. In 2015, I began claiming these so I am home free there. Happy Amending to everyone this applies to.

[FEDUKE404]

Claiming household medical premiums as SEHI

As a wrote previously, i believe SE Health applies to health insurance policies in the name of a spouse, including Medicare B and D. To that end I amended our 2013 tax return to claim my spouse's Medicare B, D and Medex. I was very specific and clear as to what I was claiming. Today we received our refund. I will now be amending 2013 and 2014 client returns where I did not claim these. In 2015, I began claiming these so I am home free there. Happy Amending to everyone this applies to.

It started with NO ONE could claim Medicare B ("not in name of the business" defense) premiums and has now evolved into "does anyone in the family have medical insurance? . . .if so, claim it as a SEHI business expense of the Schedule C owner."

I gave up this fight long ago. There is an obvious conflict between the cited "rules" in the IRS pubs and the interpretations in the old memoranda always cited as justification.

If logic is of any importance, and it probably is NOT, I fail to see how a Schedule C business owner can deduct expenses of others who have no connection to the business, or insurance for same. Just my 2¢ worth.

Have fun with your amends. Your clients will be happy.

FE

[jsamans]

It is what it is?

As a wrote previously, i believe SE Health applies to health insurance policies in the name of a spouse, including Medicare B and D. To that end I amended our 2013 tax return to claim my spouse's Medicare B, D and Medex. I was very specific and clear as to what I was claiming. Today we received our refund. I will now be amending 2013 and 2014 client returns where I did not claim these. In 2015, I began claiming these so I am home free there. Happy Amending to everyone this applies to.

I agree with FE. Although Pub 535 says "Medicare premiums you voluntarily pay to obtain insurance in your name that is similar to qualifying private health insurance can be used to figure the deduction," the fundamental basis of the SEHI deduction is that "the insurance plan must be established, or considered to be established...under your business."

That doesn't change the outcome you got, of course. You filed the amendments, and you got the refund. One might say "it is what it is." But I don't see a basis for it in the guidance, so I won't be advocating for the idea.