Old Question Revisited

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  • Bird Legs
    Senior Member
    • Jun 2005
    • 990

    #1

    Old Question Revisited

    Client, Self Employed, files Sched. C. He turned 65 in the early part of 2006 and started paying in to Medicare Insurance. He is not eligible for Soc, Sec. until April, 2007.
    Can these M/C Ins. premiums be deducted on page 1, 1040, as an adjustment to income?
    He is not eligible to participate in any health care program.
    Thank all of you for keeping me enlightened.
    This board is great.
  • solomon
    Senior Member
    • Aug 2006
    • 1012

    #2
    Why

    the year delay in being eligible for SS? At any rate, I know this topic has been beat to death on other boards as well. Some do it and some don't. Personally, I do not. FSA 3042 seems to me to clearly preclude deducting it.

    At the same time, in the case you describe, I would take the deduction on the 1040 until he starts receiving SS. Just a gut feeling - I know, not good tax practice and not compatible with FSA 3042..
    Last edited by solomon; 08-10-2007, 06:28 PM. Reason: Addition

    Comment

    • veritas
      Senior Member
      • Dec 2005
      • 3290

      #3
      The delay is because

      full retirement for SS is 66 now. Thanks to Ronald Reagan.

      Comment

      • solomon
        Senior Member
        • Aug 2006
        • 1012

        #4
        Thanks Veritas

        I am so far beyond that age I had forgotten about that.

        Comment

        • veritas
          Senior Member
          • Dec 2005
          • 3290

          #5
          I'm on top of it

          since the year I get to collect is when the money going out is more than what will come in.

          So they will probably raise the age limit and lower the benefit when I sign up. Not to mention raise the rate going in.

          Comment

          • solomon
            Senior Member
            • Aug 2006
            • 1012

            #6
            I might add

            that some use CCA 200524001 as clarification to FSA 3042 which in turn permits the deduction. On the other hand, it seems to me the CCA addresses primarily that a sole proprietor does not have to have the insurance policy issued in a business name. In addition, it clarifies that the SP can not combine two or more Sch C's profit to get a higher deduction for the insurance. My propensity still lies with FSA 3042.

            Comment

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