topic Re: Deducting COBRA payments in Deductions & credits

Deducting COBRA payments

mrmcmurry — Mon, 09 Mar 2026 06:33:06 GMT

I am a owner/partner in an S-Corp that I actively work for and receive W2, also receive a K1 from the company that I "pass thru" income/loss on my personal return. I have included COBRA payments in my Itemized Deductions as a Medical expense but now completing Wages/ & Income section under Federal Taxes and have come to "Self-employed Health Insurance Premiums" question where TT is asking for my W2 "Medicare wages" and then my "Health Insurance premiums I paid personally"...can/should I enter payments I made out of pocket for COBRA insurance coverage in this box? Or would this be "double claiming" the COBRA payments?

Re: Deducting COBRA payments

MinhT1 — Thu, 31 Mar 2022 20:59:33 GMT

COBRA premiums are not deductible if you're self-employed because the IRS requires that the insurance plan is under your name or the name of your business, which cannot be the case for Cobra premiums.

Cobra premiums can be deducted as Medical expenses in Itemized deductions (Schedule A).

Re: Deducting COBRA payments

mrmcmurry — Fri, 01 Apr 2022 00:47:01 GMT

I was certainly beginning to think that was the case but guess I needed to hear someone else say it...thanks very much MinhT1!

Re: Deducting COBRA payments

raymondkim — Mon, 06 Jan 2025 23:04:57 GMT

It is disallowed if subsidized. Most COBRAs are in person's name, an aftertax individual policy, and 100% premium (i.e. no subsidy). So it would be deductible under IRC wording.

Re: Deducting COBRA payments

raymondkim — Mon, 06 Jan 2025 23:27:45 GMT

Not accurate. Only if subsidized or have ability to subscribe to a subsidized employer plan. They no longer have an employer if on COBRA. Plan is then individual as assigned by the underwriter and group plan no different than an ACA exchange. If you were an employee then it would truly be an employer-sponsored pre-tax benefit as eligible by IRS and not taxable (the IRS is looking for two things - to force you under an ACA mandated plan, and to not get double the tax benefit).

Re: Deducting COBRA payments

NCperson — Tue, 07 Jan 2025 03:45:42 GMT

@raymondkim - COBRA is a federal requirement of a GROUP plan. COBRA is not insurance; it is a law.

The test for self-insurance is whether the PLAN is subsidized, not whether the premium charged to the individual insured is subsidized. Group plans are subsidized even if the COBRA premium payments are not.

There is no individual plan created under a COBRA mandate. it is not deductible if self-employed.

https://www.dol.gov/general/topic/health-plans/cobra

Re: Deducting COBRA payments

WA-CPA — Thu, 06 Feb 2025 22:20:32 GMT

How are group health insurance plans subsidized? As a CFO, I have never negotiated a group plan that was subsidized. Many factors go into the rates, but I don't recall a subsidy component.