topic Self-Employment Health Insurance deduction in Deductions & credits

Self-Employment Health Insurance deduction

hoga — Wed, 18 Mar 2020 20:36:42 GMT

I retired from the military in 2015 and initiated TRICARE health insurance in my name covering myself and my family in my status as a military retiree. In 2017, I became a self-employed sole proprietor (paid via 1099). It appears that I meet all of the criteria for the Self-Employment Health Insurance deduction with one exception about which I am uncertain.

IRS Publication 535 (Business Expenses) indicates that to claim the deduction, your health 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 or F, a policy can be either in the name of the business or in the name of the individual." Do my TRICARE premiums, co-pays, and deductibles qualify for this deduction, even though I established the TRICARE coverage well before a established the business? Seems to me it would have to be "considered to be established" under the business in the eyes of the IRS.

v/r

Hoga

Re: Self-Employment Health Insurance deduction

MinhT1 — Wed, 18 Mar 2020 20:53:57 GMT

Yes, your TRICARE premiums are deductible as self-employed health insurance as the policy is in your name. It does not matter that it was established before you started your business.

The co-pays and deductible cannot be claimed as self-employed health insurance. They can however be claimed as Medical expenses if you itemize your deductions in the personal section.

Re: Self-Employment Health Insurance deduction

hoga — Wed, 18 Mar 2020 23:33:53 GMT

Great news! Thank you. Very much appreciated.

I meant to also ask ... that includes Dental and Vision insurance premiums as well?

v/r

Hogan

Re: Self-Employment Health Insurance deduction

JohnB5677 — Wed, 18 Mar 2020 23:53:41 GMT

That is correct!