No, you can only claim the health insurance premiums write-off for months when neither you nor your spouse was eligible to participate in an employer-subsidized health plan. The COBRA insurance would be through you since you were the person employed and are eligible for COBRA because of your former employment.
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.
I have personally dealt with this very issue while assisting a client with an audit. The auditor was refusing to recognize the insurance that the taxpayer and his spouse (who was self-employed) because the insurance was through his employer. The auditor found in order for the health insurance to be considered as self-employed insurance, then the policy would have to be issued to the spouse (the personal self-employed).
To qualify for the deduction, you and your business must:
- Meet the definition of self-employed. According to the IRS, you are self-employed if you:
- Show a net profit for the tax year.
- Not be eligible for an employer-sponsored medical or LTC plan.
Earned income limitation - The deduction cannot exceed the earned income you collect from your business.
For example, if your self-employment activity is a sole proprietorship that generated a tax loss for the year, you’re not allowed to claim the deduction because the business didn't generate any positive earned income.
To be considered as self-employed health insurance the policy must be issued in the name of your husband. The insurance can include spouse and children, but the policy must be issued to your husband.
Deducting Health Insurance Premiums if Self-Employed
