gxt1
Level 3

Self Employment Health Care Deduction with a twist

I'm trying to help my daughter plan a tax strategy

She is a W2 employee who has good health care benefits but they are not available for her to purchase coverage for her husband.

 

He is a W2 employee with no health care benefits available.

He does some cleaning on the side for which he gets an 1190-NEC. I'll use a schedule C for that income (in part to be able to take the QBI deduction)

 

Currently they are set up to file Married, jointly

What I am not sure of if under these circumstances he is allowed to deduct self employed health care premiums to help off set his side business (self employed income).

 

Mostly this will affect them going forward in 2025. The Schedule C business name is his name as would be any health care policy so that criteria is met. And I understand it would not reduce his SS tax.

Thanks for any thoughts.