Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
rmusielak
Returning Member

My wife is self employed and paid ins premiums thru a Cobra plan. Can she deduct those premiums?

 
1 Best answer

Accepted Solutions
Marketstar
Level 7

My wife is self employed and paid ins premiums thru a Cobra plan. Can she deduct those premiums?

Unfortunately, she cannot deduct Cobra insurance premiums as a self employment expense:

  • To deduct health insurance as a business expense, the policy must be in your name or the business name

  • Your deduction for self-employed health insurance is limited to net income on your Schedule C less the deductible part of your self-employment tax (Form 1040 line 29), less contributions to a qualified retirement plan (TurboTax will calculate this for you)

  • You can't include premiums for any month you were also eligible to participate in any subsidized health plan maintained by your employer or your spouse’s employer.

  • However, payments for those months are deductible on Schedule A if you itemize deductions


View solution in original post

1 Reply
Marketstar
Level 7

My wife is self employed and paid ins premiums thru a Cobra plan. Can she deduct those premiums?

Unfortunately, she cannot deduct Cobra insurance premiums as a self employment expense:

  • To deduct health insurance as a business expense, the policy must be in your name or the business name

  • Your deduction for self-employed health insurance is limited to net income on your Schedule C less the deductible part of your self-employment tax (Form 1040 line 29), less contributions to a qualified retirement plan (TurboTax will calculate this for you)

  • You can't include premiums for any month you were also eligible to participate in any subsidized health plan maintained by your employer or your spouse’s employer.

  • However, payments for those months are deductible on Schedule A if you itemize deductions


Dynamic AdsDynamic Ads
Privacy Settings
v