I understand that self-employed individuals are not able to deduct health insurance premiums in a given month if they or their spouse are eligible to participate in an employer sponsored health plan. Is eligibility based on hours worked? Or the ability to enroll (such as during open enrollment)?
My husband is recently self-employed and we have since purchased our own individual health insurance. I have worked part-time for several years. I recently learned that employees who work 28 hrs/wk are eligible for coverage at my company. My hours fluctuate each month and are not guaranteed. Historically, I've worked 25 or fewer hours per week, but some weeks I may work more than 28 hrs. We're trying to determine if we can make a deduction for a given month.
To determine if we are able to deduct our health insurance premiums in a given month, would it be based on me working fewer than 28 hrs/wk in that month? If I work more than 28 hrs/wk in that month, are we precluded from taking the deduction for that month?
Monthly eligibility seems ambiguous. Even if I became eligible by number of hours worked in a given month, I am unable to sign up for the plan until open enrollment. And even then, I may not have the hours to support continued coverage. I have not been able to find any specific IRS guidance for our situation.
Any advice would be appreciated. Thank you!
