Trying to work out whether will qualify to deduct healthcare costs
Starting work in mid April as independent contractor after being unemployed
Understand health care costs need to exceed 10 pct of AGI in 2019 to qualify for deduction
Do SEP IRA payments and (social security/medicare payments) reduce your AGI?
What are rules determining when you can deduct health care .. from day one of work?
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Yes, health care costs need to exceed 10% of your AGI to be even included as your itemized deductions.
Yes, SEP IRA payments do reduce your AGI, it is a deduction.
To deduct health care - as an itemized deduction, you can deduct the health care cost for the whole year, whether you work or not, as long as you paid it. The same applies to any other medical expenses that you paid.
But, to deduct health care as an adjustment to income, as self-employed health care (it is a similar deduction to the SEP, it lowers your AGI), it does start the moment you are eligible... you are eligible to have self-employed insurance when you can no longer get employer-provided insurance. Please see the details here; it provides the eligibility details.
Yes, health care costs need to exceed 10% of your AGI to be even included as your itemized deductions.
Yes, SEP IRA payments do reduce your AGI, it is a deduction.
To deduct health care - as an itemized deduction, you can deduct the health care cost for the whole year, whether you work or not, as long as you paid it. The same applies to any other medical expenses that you paid.
But, to deduct health care as an adjustment to income, as self-employed health care (it is a similar deduction to the SEP, it lowers your AGI), it does start the moment you are eligible... you are eligible to have self-employed insurance when you can no longer get employer-provided insurance. Please see the details here; it provides the eligibility details.
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