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Level 2
posted Feb 12, 2024 3:29:26 PM

Self employed, or retired... which?

I retired from my w2 job 5 years ago. I now have an eBay online business as a sole proprietor... under occupation for tax purposes, which should I say I am... self-employed, or retired?

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1 Best answer
Expert Alumni
Feb 12, 2024 3:54:37 PM

Yes, you can use self employed health insurance on your business schedule.

 

Qualifications for self employed health insurance (includes medicare).

 

  • To get health insurance deduction, your Schedule C must show a net profit.
  • The deduction amount generally can't exceed your net profit amount.
  • If you (or your spouse if filing jointly) were eligible to participate in an employer's health plan during any given month—even if you declined the coverage—the premium you paid for that month can't be claimed under this deduction.
  • Health insurance premiums you paid for your child, even if you aren't claiming them as a dependent, are eligible for this deduction as long as your child was age 26 or younger at the end of 2023.
  • The self-employed health insurance deduction shows up on Schedule 1, line 17.

To enter self employed health insurance:

  1. When entering information for your business expanses. navigate to the section marked Less common (showing the icon of a magnifying glass with a dollar sign in it)
  2. Find and select the option for Health Insurance Premiums (typically found on page 2 of the section), then click Continue
  3. A screen showing your list of expenses should appear next. Select the Start button next to the Health Insurance Premiums section

You can add or change your self employed insurance  

  1. Sign into your TurboTax account
  2. Select Income and Expenses > Work on other income > Select Edit/Add beside Self-employment income and expenses
  3. Edit beside your business > Scroll 'Less common' > Scroll to 'Business Insurance' > Click the box next to it and Continue
  4. Scroll to Business Insurance, select Start or Review

4 Replies
Level 15
Feb 12, 2024 3:30:56 PM

Either one.  The occupation entry is only used for statistical purposes. 

Expert Alumni
Feb 12, 2024 3:31:32 PM

Either one is fine.  Choose the one you feel is most accurate.   

Level 2
Feb 12, 2024 3:40:42 PM

The reason why I ask this is for deductibility of Medicare medical, dental, and supplemental insurance premiums... I have been filing a schedule C for many years, and I wonder if my premiums are deductible as an adjustment to income, line 17... Are they? Thanks for your help!

Cheers, Duffy

Expert Alumni
Feb 12, 2024 3:54:37 PM

Yes, you can use self employed health insurance on your business schedule.

 

Qualifications for self employed health insurance (includes medicare).

 

  • To get health insurance deduction, your Schedule C must show a net profit.
  • The deduction amount generally can't exceed your net profit amount.
  • If you (or your spouse if filing jointly) were eligible to participate in an employer's health plan during any given month—even if you declined the coverage—the premium you paid for that month can't be claimed under this deduction.
  • Health insurance premiums you paid for your child, even if you aren't claiming them as a dependent, are eligible for this deduction as long as your child was age 26 or younger at the end of 2023.
  • The self-employed health insurance deduction shows up on Schedule 1, line 17.

To enter self employed health insurance:

  1. When entering information for your business expanses. navigate to the section marked Less common (showing the icon of a magnifying glass with a dollar sign in it)
  2. Find and select the option for Health Insurance Premiums (typically found on page 2 of the section), then click Continue
  3. A screen showing your list of expenses should appear next. Select the Start button next to the Health Insurance Premiums section

You can add or change your self employed insurance  

  1. Sign into your TurboTax account
  2. Select Income and Expenses > Work on other income > Select Edit/Add beside Self-employment income and expenses
  3. Edit beside your business > Scroll 'Less common' > Scroll to 'Business Insurance' > Click the box next to it and Continue
  4. Scroll to Business Insurance, select Start or Review