Old Question Revisited

[Bird Legs]

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]

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..

[veritas]

The delay is because

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

[solomon]

Thanks Veritas

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

[veritas]

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.

[solomon]

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.