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Can I deduct health insurance premiums?

I am a limited member of partnership LLCs and rent out my old condo long term to one tenant. I thought this defined me as "self-employed." Yet, I don't know how to claim that I am self employed in the Turbotax portion that asks me to describe my office space because I've already reported the rental income on my condo  as Rental Income and K-1s. So how can report income from the business of being self-employed?  Or do I have to report the LLC and condo rental income again?

 

All the LLC K-1s ask if I pay for my own health insurance, and the answer is yes to all of them, but which one of them do I use to report my health insurance premiums I paid? At the same time it says, don't report here if you received a 1095. I did receive a 1095, but I did not qualify for or receive any obamacare subsidies, I just happened to use the marketplace to purchase my health care plan.  All very confusing.

4 Replies

Can I deduct health insurance premiums?

Just some basic info.  You must be self employed but passive income such as a rental property doesn't count.  If you receive income from a LLC that is treated as a partnership and it is self employment income it will appear on line 6 of Schedule K-1 and if you materially participate in the business you will be subject to self employment tax on this income.  That means you will pay for social security and medicare tax.  This is the test for self employment.   If you received a Form 1095A (which I assume you did since you mention a 1095 Form) you must input the information shown on that form which will show what you the insurance costs and any portion paid under the affordable care act.  Your deduction is only for the piece you paid.  The Self-Employed Health and Long Term Care Insurance Deduction Worksheet in Turbo Tax appears to be where you enter your premium but it specifically state that you should not enter any amount you entered on From 1095A.  I assume these amount are carried over automatically to take the deduction.   The deduction is limited to your self employment income less the deduction for you self employment tax and retirement plan contributions.  Also you can't count premiums for any month where you or your spouse could be covered under a subsidized plan of either of your employers.  I haven't run into this situation but assume that if you have income on Sch K-1 line 6 and you input your insurance on the Form 1095A worksheet or "Self-Employed Health...." worksheet everything will come out OK.  If you don't have self employment income this deduction doesn't apply to you.  If you do have self employment income be sure to see if your income qualifies for the Qualified Business Income Deduction which is available to you.

Can I deduct health insurance premiums?

CSH2012 please excuse me.  I was looking at a Schedule K-1 for a trust.  A partnership K-1 will have business income on Line 1.  Not line 6.

Can I deduct health insurance premiums?

My k-1 income is all in box 2 rental income. Anyway it thus seems since all income is rental income not earned income I can't take the deduction in health insurance premiums. Is this correct?

Can I deduct health insurance premiums?

No.  It doesn't appear you have any "self employment income" that qualifies you for this.  For rental income you must have rentals as you full-time job -basically spending all fo your time managing it.

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