Non Employee Board of Directors 1099NEC

[KAE494]

 My husband is retired and sits on a Board Of Directors for our Rural Co-op.   He is offered Family Insurance through their Health Insurance Benefits.  We receive at the end of the year a 1099 NEC for the Premiums they pay for Healthcare.  This looking like they give us this money as income.  Do we really have to pay on Healthcare Premiums? Do we write this off as an independent consultant? 

Thank so much, 

KAE494

[MaryK4]

Because you received the health insurance as compensation for his service as a Board member, it is taxable income.  You can deduct the cost of the health insurance against the self-employment income.  You will enter the information as self- employment income and TurboTax will create the Schedule C and other forms to file with the IRS.

[NCperson]

@KAE494 technically, there is a "self employment health insurance" adjustment.  It' not part of Sch C. 

the net effect is you pay 15.3% SE tax on the income, but there is no income tax impact as it is an adjustment that reduces AGI.