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rsedging
New Member

Can we deduct (as business expense) the cost for healthcare insurance premiums or medicare premiums?

My husband and I are both retired. He receives a pension and we both receive social security monthly. We also are both self-employed and both show a profit.
1 Best answer

Accepted Solutions
RichardG
New Member

Can we deduct (as business expense) the cost for healthcare insurance premiums or medicare premiums?

Yes.  Here's how to report that business expense:

  • First, if these insurance premiums were withheld from Social Security checks and reported on Form 1099-SSA, return to the Social Security entry screen and delete the entries for those premiums.
  • Next, take these steps to report the insurance premiums:

    1. Open your return and click the Business tab.
    2. Continue to How do you want to enter your business income? and click I'll choose what I work on.
    3. Select Update for Business Income and Expenses
    4. Select Edit next to the business
    5. Scroll down to Other Common Business Expenses and select Start or Update
    6. Select Start or Update for Insurance Payments

    As a self-employed person, you're allowed to deduct premiums up to the amount of your net business income; the premiums will appear on Line 29 of your Form 1040. Any payments that exceed your net business income will flow over to Schedule A as a personal medical expense. We'll automatically handle the line items and calculations for you.

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1 Reply
RichardG
New Member

Can we deduct (as business expense) the cost for healthcare insurance premiums or medicare premiums?

Yes.  Here's how to report that business expense:

  • First, if these insurance premiums were withheld from Social Security checks and reported on Form 1099-SSA, return to the Social Security entry screen and delete the entries for those premiums.
  • Next, take these steps to report the insurance premiums:

    1. Open your return and click the Business tab.
    2. Continue to How do you want to enter your business income? and click I'll choose what I work on.
    3. Select Update for Business Income and Expenses
    4. Select Edit next to the business
    5. Scroll down to Other Common Business Expenses and select Start or Update
    6. Select Start or Update for Insurance Payments

    As a self-employed person, you're allowed to deduct premiums up to the amount of your net business income; the premiums will appear on Line 29 of your Form 1040. Any payments that exceed your net business income will flow over to Schedule A as a personal medical expense. We'll automatically handle the line items and calculations for you.

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