For the self employment tax deduction for health insurance premiums paid, does the policy need to be in the sole proprietor's name, or can it be in the spouses' name?

[reubengarrison]

My wife is now an independent contractor and as such we do not have health insurance provided by her employer. I do not have health insurance available to me at work. We purchased a policy in my name with her as a dependent. We would like to take the deduction for people who are self employed and pay their health insurance premiums. Does the policy have to be in her name (the sole proprietor) in order to take the deduction? 

[TaxGuyBill · Accepted solution]

Unfortunately, there isn't a clear answer.

Up until a few years ago, the answer was that it would need to be in her name.  However, a few years ago the IRS gave some guidance about the Self Employed Health Insurance Deduction.  Although it did not deal directly with your question, the guidance may indicate that you can take deduction even if it is in your name.

To be on the 'safe side' I would recommend changing the insurance to have her as the primary policy holder.

[DoninGA]

See IRS Publication 535 Business Expenses -  https://www.irs.gov/pub/irs-pdf/p535.pdf#page=18

For self ­employed individuals filing a Schedule C, C­EZ, or F, a policy can be either in the name of the business or in the name of the individual.