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Deductions & credits
so since my long term care insurance is not subsidized, but my and my wife's basic health insurance is subsidized, do I get the deduction or not.
No, you do not get the self-employment deduction. Here is what the IRS says: "You can’t take the deduction for any month you were eligible to participate in any employer (including your spouse's) subsidized health plan at any time during that month, even if you didn’t actually participate. " Instructions for 7206.
Perhaps long term care insurance does not fall under the IRS definition of a "health plan subsidized by your employer or your spouse's employer?"
No, LTC is not considered to be such a health plan. A health plan follows the definition of a health plan in the ACA, where it has minimum standards for what qualifies to be a health plan.
"For that matter, am I really "self-employed" in the eyes of the IRS via my part time consulting work while I receive a federal retirement pension? "
Yes, you are definitely self-employed. You report this consulting work on Schedule C, right? The fact that you are receiving a pension is not relevant to this issue.
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