se Health Ins Premiums

[S T]

T/p lost job 3/07 where she had health care, so signed up for cobra for 9 months. She was employed as temporary for several months, then located another employer, but was not eligible for health insurance until 1/08. T/P is also self employed and files Sched C, less income than on W-2 forms.

Can she claim all or a portion of the Cobra payments as S/E Health Insurance?

Sandy

[WhiteOleander]

I don't think so. Even with cobra payments, the insurance is not issued in the name of her company. Or her name.

[S T]

More on Cobra

Does anyone know about this

The Service issued a CCA or SCA indicating that COBRA payments are not a "subsidized health plan". Therefore, I would see no problem with using COBRA payments for the SE insurance deduction

I found this information from another Board post.

Thanks,

Sandy

[ED SMITH]

COBRA is far from subsidized. In fact the insured pays a very high premium. It is sometimes cheaper to get one of the Blues if eligible.

[Jesse]

Sandy, it is not a subsidized plan and to qualify for SE deduction it no longer must be written under the business but can be in the individuals name so I would say yes it does qualify.

[S T]

How much

Would you allocate all of the Cobra payment to SE even though she was working at a W-2 wage job and had her self employment? Or use an allocation of wages to Schedule net income? She wasn't eligible for Group Med un til 1/08.

Sandy

[S T]

Deduct SE

Bringing this back to the top.

Would you deduct all of the Cobra payments as SE, or only a portion of it in relationship to SE income and wages?

Thanks,

Sandy

[Jesse]

Are the wages from a new job(a job different than the previous job in which she is obtaining COBRA thru) that she is working simitaneously with her Self Employment income?

If yes I wouldn't think there would be a need to allocate.

[S T]

Jesse

Thanks Jesse,

T/p left old job 3/07 obtained Cobra, had self employment income, some temporary W-2 income, then in 10/07 obtained a permanent job on W-2 but was not eligible for group insurance until 1/08. During 3/07 thru 12/07 had the self employment income.

So prorate based on the income from each source? for the SE deduction.

Thoughts are welcomed!

Sandy

[S T]

Anybody

Bringing this back up to see if there are any thoughts.

We know that Cobra can be deductible as SE , however, because t/p was also a wage earner on W-2, should the Cobra insurance be prorated between W-2 wages and SE Income to arrive at the SE deduction?

Thoughts would really be welcomed, so I can move this one off my desk.

Thanks,

Sandy

[Jesse]

Sandy,
Why would you have to prorate it?

If I'm a SE contractor and have another job whether it be working for another contractor or bartending in the evening couldn't I still apply 100% of my unsubsidized health insurance to my SE income.