I have self employment income. Can I deduct the health ins. premiums that my husband and I pay thru a retirement benefit he receives (they are paid with after tax $)?

[drettwalk]

The benefit allows us to continue to access the company's health insurance coverage and the company covers part of the cost.  We received a 1095-c.

[Marketstar · Accepted solution]

No, to deduct health insurance as a business expense, the policy must be in your name or the business name.

If you or your spouse could participate (even if you declined coverage) in an employer's health plan at any time during a given month, you cannot take the deduction for that month. However, payments for those months are deductible on Schedule A if you itemize deductions.

Your deduction for self-employed health insurance is limited to net income on your Schedule C less the deductible part of your self-employment tax (Form 1040 line 29), less contributions to  a qualified retirement plan.

  Any extra self-employed health insurance payments will be included with your medical expenses on Schedule A, Itemized Deductions

[cyacheetah]

Here is a follow up that I can't find an answer to:  if I decline my spouse's employer's health coverage in favor of buying my own plan, can i deduct those premiums from my self employment income during months that are outside of the open enrollment or qualifying event periods since I could not participate in that coverage during those months?  If the analysis is to be month by month, it seems that would be a fair application of the rule as stated above.  Does anyone know the actual code section that covers this?