My wife is self employed. I was laid off, so we paid into Cobra. Because of the wife being self employed are we able to deduct the Cobra insurance payments?

[8count0]

Does the business need to write the check or reimburse the personal account so it shows up as a business expense?

[TomYoung · Accepted solution]

It's one of those "it depends" situations.

The IRS's rules that allow COBRA to be deductible are set forth here:

https://www.irs.gov/uac/newsroom/dont-miss-the-health-insurance-deduction-if-youre-self-employed

The crucial factor here - something you didn't address in your question - is whether the policy is in your wife's or the business' name.

Tom Young

[8count0]

Thanks...the policy is in my name, so looks like it would have to lump into the medical expense category which won't have any tax savings for me.  My wife offers her employee an insurance stipend. Was thinking maybe she could give herself the same stipend as a business expense.  In any case, the good news I have started my own consulting business and will be net profitable so even if I can't deduct for 2016, looks like 2017 I will be able to, if I am understanding the rules.