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Can I write off short-term health insurance premiums?

back2apex — Tue, 04 Jun 2019 20:32:17 GMT

My husband changed jobs and his employer offered us COBRA insurance. The premiums were very high so we opted to purchase a 3-month short-term private health insurance policy to bridge the gap between his prior coverage and his new coverage with his new employer. I'll note that I am self-employed. Can we write off these premiums and if so, where do I correctly post them?

You have two options for deducting the premiums. If your...

RichardG — Tue, 04 Jun 2019 20:32:20 GMT

You have two options for deducting the premiums. If your net self-employment income is enough to cover the premiums, deduct the premium as "self-employed health insurance" as one of the expenses for your business. If not, deduct the premium as a medical expense when you go through the interview for medical expenses under the Personal Tab.

Thank you Richard!

back2apex — Tue, 04 Jun 2019 20:32:21 GMT

Thank you Richard!

The answer by Richard is misleading. You can't take the...

Zbucklyo — Tue, 04 Jun 2019 20:32:24 GMT

The answer by Richard is misleading. You can't take the health insurance premium as a business deduction that lowers your net income from the business and lowers self-employment tax. It is a deduction that is reported on Line 29 of your Form 1040, and lowers taxable income.

Thank you. So where do I post it so that it will directl...

back2apex — Tue, 04 Jun 2019 20:32:26 GMT

Thank you. So where do I post it so that it will directly affect Line 29 on my 1040? Right now it is posted in Other Business Expenses.

Also, can I deduct private dental insurance premiums?

Yes you can deduct dental insurance for the period in whi...

Zbucklyo — Tue, 04 Jun 2019 20:32:27 GMT

Yes you can deduct dental insurance for the period in which your husband did not have it offered through his employer (COBRA does not count). Other Business Expenses is definitely not correct. I'm not familiar with where the question is asked in Home and Business but somewhere during the business interview or the business section there should be a place to enter it where it will flow through properly.

Other business expenses is the right place to enter the p...

RichardG — Tue, 04 Jun 2019 20:32:29 GMT

Other business expenses is the right place to enter the premiums. Dental insurance premiums are also deductible.

But she is taking it as a direct business expense, unless...

Zbucklyo — Tue, 04 Jun 2019 20:32:30 GMT

But she is taking it as a direct business expense, unless that is how TT shows it when it goes on Form 1040. If that is correct, disregard my prior comment - it is entered correctly.

Thanks everyone for your input. Gotta run out for a minu...

back2apex — Tue, 04 Jun 2019 20:32:31 GMT

Thanks everyone for your input. Gotta run out for a minute, so I'll review your comments when I return. I greatly appreciate your support!

Please see the screenshot below for the correct location...

RichardG — Tue, 04 Jun 2019 20:32:33 GMT

Please see the screenshot below for the correct location to enter your health insurance premiums. You get to this screen by clicking on "Other Common Business Expenses." The entry flows directly to your Form 1040, not your Schedule C.

Thank you! Do the dental insurance premiums go there too?

back2apex — Tue, 04 Jun 2019 20:32:34 GMT

Thank you! Do the dental insurance premiums go there too?

Yes.

RichardG — Tue, 04 Jun 2019 20:32:36 GMT

Yes.

Thanks!

back2apex — Tue, 04 Jun 2019 20:32:37 GMT

Thanks!