Help please.
I am a sole proprietor that will have a small profit at the end of the year prior to deducting our health insurance premiums. After deducting the premiums I will have about a $7,000 loss. I understand that I can take any remaining health insurance premium and add it to our other medical expense so if we itemize we can deduct everything over 7.5% of our AIG (I think).
My question is:
If I want to contribute to an IRAs for my wife and myself can I leave the Schedule 1, line 17 blank and take the approximately $20,000 health insurance premium for me and my family as a part of of itemized dedutions or am I required the deduct the amount of the health insurance premium that equals my business income and show it on the Schedule 1? This option will show no business or earned income, thus we will not be able to put money in an IRA.
Thanks,
John
