Self employed health insurance deduction

[KWF]

Taxpayer was employed at a state college, where he was covered by the state's health insurance plan.

T/p retires from college job, but remains covered by state health insurance plan. During retirement, t/p also enrolls in medicare. The medicare coverage is in addition to his state health insurance.

During retirment, t/p becomes self employed by starting a sch c business, which shows a profit.

Can t/p deduct medicare premiums he paid as an adjustment to income (1040, line 29)?

Or is t/p considered to be still participating in subsidized heath care maintained by employer which would disqualify line 29 deduction (even though t/p is no longer employed)?

[Kram BergGold]

I Vote NO

Assuming the coverage he is getting from the U is subsidized then he is eligible for a subsidized plan and therefore can not claim the deduction.
If he is paying 100% of the cost of the plan by the U then I would take the Medicare.

[TaxGuyBill]

At one time the disallowing term was one being covered by an EMPLOYER health insurance plan.
That differs from being covered as a RETIREE, even if the underlying insurance coverage is the same or similar.

The way I read your question, there is NO "employer" health insurance plan. If that is the case, and the rules have not changed, then I could make a case to (within allowable limits) claim the retiree insurance premiums and (his own) Medicare B premiums as SEHI.

If you want to stir up a TTB mess. . .mention deducting the spouse's Medicare B premiums.

FE

LOL. I agree with you on this one. :-)

[MLincolnEA]

I'd deduct the Tp and SP medicare no questions asked.

The Self-employed health insurance deduction is for insurance for the self-employed individual and their family. You get it all. As I mentioned elsewhere, I'd also look at a 105 Plan.

Matt

[TAXNJ]

Does this still....

The Self-employed health insurance deduction is for insurance for the self-employed individual and their family. You get it all. As I mentioned elsewhere, I'd also look at a 105 Plan.

Matt

apply or did you find an update?

Deductibility of Medicare Premiums Under Code Section 162(l)
(B) Other coverageParagraph (1) shall not apply to any taxpayer for any calendar month for which the taxpayer is eligible to participate in any subsidized health plan maintained by any employer of the taxpayer or of the spouse of, or any dependent, or individual described in subparagraph (D) of paragraph (1) with respect to, the taxpayer. The preceding sentence shall be applied separately with respect to—....

reference:

https://www.irs.gov/pub/irs-wd/1228037.pdf