To be able to deduct Self-Employed Health Insurance see below. Although you would enter the amount in the Schedule C expense page, it will be entered on Line 29 1040.
Self-Employed Health Insurance Deduction
You may be able to
deduct the amount you paid for medical and dental insurance and qualified
long-term care insurance for yourself, your spouse, and your dependents. The
insurance can also cover your child who was under age 27 at the end of 2016,
even if the child wasn’t your dependent. A child includes your son, daughter,
stepchild, adopted child, or foster child. A foster child is any child placed
with you by an authorized placement agency or by judgment, decree, or other
order of any court of competent jurisdiction.
One of the
following statements must be true.
- You were self-employed and had a net profit for the year
reported on Schedule C (Form 1040), Schedule C-EZ (Form 1040), or Schedule
F (Form 1040).
- You were a partner with net earnings from self-employment
for the year reported on Schedule K-1 (Form 1065), box 14, code A.
- You used one of the optional methods to figure your net
earnings from self-employment on Schedule SE.
- You received wages in 2016 from an S corporation in which
you were a more-than-2% shareholder. Health insurance premiums paid or
reimbursed by the S corporation are shown as wages on Form W-2.
The insurance plan
must be established, or considered to be established as discussed in the
following bullets, under your business.
- For self-employed individuals filing a Schedule C, C-EZ,
or F, a policy can be either in the name of the business or in the name of
the individual.
- For partners, a policy can be either in the name of the
partnership or in the name of the partner. You can either pay the premiums
yourself or the partnership can pay them and report the premium amounts on
Schedule K-1 (Form 1065) as guaranteed payments to be included in your
gross income. However, if the policy is in your name and you pay the
premiums yourself, the partnership must reimburse you and report the
premium amounts on Schedule K-1 (Form 1065) as guaranteed payments to be
included in your gross income. Otherwise, the insurance plan won’t be
considered to be established under your business.
- For more-than-2% shareholders, a policy can be either in
the name of the S corporation or in the name of the shareholder. You can
either pay the premiums yourself or the S corporation can pay them and
report the premium amounts on Form W-2 as wages to be included in your
gross income. However, if the policy is in your name and you pay the
premiums yourself, the S corporation must reimburse you and report the
premium amounts on Form W-2 in box 1 as wages to be included in your gross
income. Otherwise, the insurance plan won’t be considered to be
established under your business.
Medicare premiums
you voluntarily pay to obtain insurance in your name that is similar to
qualifying private health insurance can be used to figure the deduction.
Amounts paid for health insurance coverage from retirement plan distributions
that were nontaxable because you are a retired public safety officer can’t be
used to figure the deduction.
