Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
hnvtllc
Returning Member

Health Insurance for the self employed

What is the best way to handle reporting wages in getting various health insurance as in the Obamacare or straight purchasing insurance? This varies month to month; can the best average be utilized? This is for a Single Owner Llc, so would I have to have stubs for them to requalify for either? 

1 Reply
LaunieR_EA101
Employee Tax Expert

Health Insurance for the self employed

"Most self-employed taxpayers can deduct health insurance premiums, including age-based premiums for long-term care coverage. Write-offs are available whether or not you itemize, if you meet the requirements.

 

If you are self-employed, you may be eligible to deduct premiums that you pay for medical, dental and qualifying long-term care insurance coverage for yourself, your spouse and your dependents.

  • This health insurance write-off is entered on Part II of Schedule 1 as an adjustment to income and transferred to page 1 of Form 1040, which means you benefit whether or not you itemize your deductions.
  • Unlike an itemized deduction, this deduction treatment is beneficial because it lowers your adjusted gross income (AGI).
  • Having lower AGI can reduce the odds that you’ll be affected by unfavorable phase-out rules that can cut back or eliminate various tax breaks.

Eligibility is determined month-by-month

You can only claim the health insurance premiums write-off for months when neither you nor your spouse were eligible to participate in an employer-subsidized health plan.

For example, if you were single and ineligible for any employer-provided health plan during the last six months of the year because you left your job and started your own business, you can claim the deduction for premiums you paid for coverage during that six-month period."

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

 

As far as calculating your cost for health insurance you should use the documents you have for each month to total your 12 months of premiums to report on your tax return. You would need your exact amount for the year. 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
Privacy Settings
v