Are self-employed health insurance premiums still tax deductible? Are those subject to the 7.5% AGI requirement (Counted as medical expenses)?
Here is my situation. I have an S-Corp, however, the health insurance premiums for my family were paid from my personal account after tax. Thus the premiums do not appear on my business tax return or the K-1 statement.
Are my premiums still tax deductible? Where do I enter this on my personal tax return in Turbo tax home and business edition?
Thank you.
If the plan was not established by the business, the business did not pay the premiums or reimburse you for the premiums and report on a K-1, then you may have to report on a Schedule A under the itemized deductions as a medical expense, which is subject to the 7.5% rule you mentioned, this is according to the information I have found on the IRS website. The IRS also has an article on not missing Insurance deductions. I would check this article out to see if any of the situations apply to you, may be helpful.
https://www.irs.gov/newsroom/dont-miss-the-health-insurance-deduction-if-youre-self-employed
https://https://www.irs.gov/taxtopics/tc502/taxtopics/tc502
Hope this information helps.
My reply to this subject is actually a report on a current flaw in the desk top/forms version of the program. Specifically, line 29 of the 1040 worksheet does not have a drill down that allows you to enter this "adjustment". You CAN get to line 29 of the worksheet from line 29 of the Schedule 1, but at that point you're stuck. Also, if you type "self employed health insurance" into the "find" box in the upper right corner of the "step-by-step" version, you get NOTHING!
I don't understand why this is treated as an "adjustment to income" and not a Sch C expense, but that's another subject.