Deducting Medical Insurance Premiums as a Sole Proprietor

[KMH6]

I have always been covered by my spouse's employer-subsidized medical plan. They are retiring and we will pay full premiums for COBRA for November and December 2024, then enroll in an Exchange plan for 2025 (we are not old enough for Medicare). Can I deduct these 2 months of premiums as a business expense when filing our joint 2024 return? For 2025, would premiums be deductible?

[jashley]

Health insurance paid for a sole proprietor and their spouse and dependents under age 27 are deductible on Form 1040, Schedule 1, Line 17 as an adjustment to income.

1. The tax payer must be self-employed with a net profit.

2. The deductible amount is the smaller of the health insurance premiums or the net profit.

3. Months in which the taxpayer was eligible to participate in a subsidized health plan are not deductible.

4. Medicare Parts are eligible for the self-employed health care deduction.

5. Premiums paid while enrolled in an exchange program are eligible for the self-employed health care deduction.