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Self employed
If you were an employee your W2 would reflect the payment for your health insurance and you would still pay social security and medicare tax on any employee contribution amounts that you made. Moving the deduction away from schedule C means that the deduction is still there and keeps you from paying income tax on the health insurance amount but makes you pay self-employment tax on the amount paid for health insurance (which is the social security and medicare).
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March 11, 2025
9:04 AM