Question on Health Ins

[JG EA]

Another questions on this - For the above the line deduction, would health insurance premiums paid for by a military pension disqualify a SE TP?

They have two separate other policies that I want to count, but want to make sure the pension thing won't disqualify them.

[Corduroy Frog]

No answer

I'm sure the conventional approach would lean against it.

There have been discussions on the board over the last couple years. I mentioned the "conventional" approach, where a small business owner must privately buy the insurance policy in the name of the business. However, the real world application of this approach is not "real world" at all -- this almost never happens. How many insurance companies would sell a private package to an individual, and then write it in the name of the business?

I don't think this is what Congress intended, and have been routinely deducting restricted policies on this line as an adjustment. I am not on solid ground however. In 2005, a private letter ruling addressed this, but still required personal policies to be purchased under the company name. See TTB, page 5-10. If following the rules, a sweeping policy such as one administered by a government agency would not qualify.

[joanmcq]

I believe I just saw a ruling where medicare pt D qualified as SE heath insurance. But I'm speaking off the top of my head.

[LTS]

se and health insurance

the name of a business on a sch c/f is under the name and soc sec # of the taxpayer. the other part is DBA 'whatever'. i take any insurance under the name of the taxpayer.

[S T]

Medicare B and D

Joan,

Maybe you can recall where you read that possibly Medicare D would be covered under SE Ins, what about Medicare B?

We have had numerous discussions on whether these coverages would be eligible for SE Insurance Deduction.

Sandy

[joanmcq]

Actually, I was hoping my comment would spark some recollection on one of the other poster's memories, mine being not what it was. Was it in a class I took recently, or a message board posting, or an RIA checkpoint.....???? I don't have all my research materials here at home, especially the book from the last class I took, so that's why I'm pretty vague

[JG EA]

Another questions on this - For the above the line deduction, would health insurance premiums paid for by a military pension disqualify a SE TP?

They have two separate other policies that I want to count, but want to make sure the pension thing won't disqualify them.

Please notice that I was not saying could I take the Pension health insurance premium, but would that disqualify the taxpayer like an employer health insurance premium would.

[LTS]

ohhh...

Please notice that I was not saying could I take the Pension health insurance premium, but would that disqualify the taxpayer like an employer health insurance premium would.

since you really want us to address your question :>) - my off the top response is no to the other policies. that is, no se insurance deduction to agi.

[Bees Knees]

IRS Pub 535, page 24 says:

Other coverage. You cannot take the 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. This rule is applied separately to plans
that provide long-term care insurance and plans
that do not provide long-term care insurance.
However, any medical insurance payments not
deductible on line 29 of Form 1040 can be included
as medical expenses on Schedule A
(Form 1040) if you itemize deductions.

I don’t think there is any need to go any further or try to read some kind of exception into this rule. Does the taxpayer have any other coverage from an employer – yes the military pension pays for health insurance. Answer to your question, no you can’t take self employed health insurance deduction on the front of the 1040.

[JG EA]

Thank you so much LTS and Bees.