If your business (Schedule C) uses the cash method and you paid your health insurance premium in 2017, enter it on your 2017 Schedule C.
If your business (Schedule C) uses the accrual method and you paid your health insurance premium in 2017, enter it on your 2018 Schedule C.
The cash method
.
The
cash method is the more commonly used method of accounting in small business.
Under the cash method, income
is not counted until cash (or a check) is actually received, and expenses
are not counted until they are actually paid.
The accrual method. Income is counted when the
sale occurs, and expenses are counted when you receive the goods or services. You don't have to wait until you see
the money, or actually pay money out of your checking account, to record a
transaction.
See IRS
Publication 334 Accounting Periods and Methods for
additional information.
