Retirement health care premium deduction

[roundyj]

I retired in 2021. As a retiree, I can (and have) stay(ed) on my previous employer's health care plan, paying a higher premium (then when I was working). In retirement, I have income as an independent contractor, 1099. Can I deduct my health care premiums from my 1099 income?

[Critter-3]

Yes you can HOWEVER it is NOT a direct Sch C deduction but an adjustment to income on the form 1040. 

[Opus 17]

You can't take the small business heath insurance premium deduction because you are on your employer's plan.  To take the small business deduction on schedule C, the plan must be in your own name.

You are allowed to deduct the premiums as a schedule A itemized deduction. 

[Critter-3]

When you retire and stay on an employer's plan it is usually done thru a COBRA situation where you don't get a reduction on the premium ... if that is the case you can take the adjustment. 

[roundyj]

Would this require me to itemize deductions? I do not have enough to exceed the standard deduction.

[roundyj]

This answer conflicts with the previous answer. I failed to mention that I do not itemize, do not have enough to exceed the standard deduction.

[roundyj]

As a retiree, I stay on the plan, as a retiree. I pay 40% of the premium. It is not Cobra

[Critter-3]

Ok then this is a supplemented plan which is not eligible for the adjustment  ... however what you do pay is a medical expense on the  Sch A.

[Opus 17]

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@Critter-3 wrote:

When you retire and stay on an employer's plan it is usually done thru a COBRA situation where you don't get a reduction on the premium ... if that is the case you can take the adjustment. 

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Even if the employee is paying the "full price", it is the full price as negotiated by the employer, not the "full price" for a private insurance policy, so it is still considered employer-subsidized.  To the best of my knowledge, the small business health insurance premium deduction only applies when the policy is in the name of the small business (i.e. the sole prop.).  Here, the policy is in the name of the former employer. 

https://turbotax.intuit.com/tax-tips/home-ownership/deducting-health-insurance-premiums-if-youre-sel...

"If you (or your spouse if filing jointly) were eligible to participate in an employer's health plan during any given month—even if you declined the coverage—the premium you paid for that month can't be claimed under this deduction"

https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-credits-deductions/deduct-health-ins...

https://ttlc.intuit.com/turbotax-support/en-us/help-article/import-export-data-files/enter-health-in...

"The insurance plan must be established, or considered to be established as discussed in the following bullets, under your business.

• For self-employed individuals filing a Schedule C (Form 1040) or Schedule F (Form 1040), a policy can be either in the name of the business or in the name of the individual."

https://www.irs.gov/publications/p535#en_US_2021_publink1000208843