Can I take the self-employed health insurance deduction on Schedule C if I pay premiums for a retiree health plan provided by my previous employer?

[miltf]

I know that you are not allowed to take the deduction if "you or your spouse could participate (even if you declined coverage) in an employer's health plan at any time during a given month."  But since I'm now retired from this company (I do consulting now} is it still considered that I have coverage through an employer's health plan?

[Vanessa · Accepted solution]

No, you cannot deduct it. This is still considered an employer-sponsored health plan so it is not deductible as Self-Employed health insurance. 

[bushdl30]

there was a similar question on this forum and the recommended answer was that it was deductible. The was additional detail that the premiums were paid by the person  with post tax dollars. I am a bit confused as to which as is correct and if they are both correct what is the difference in the 2 situations.

[AmyC]

The instructions for sch 1 line 16, page 88, says subsidized health plan available through employer, then not eligible. There is always going to be a splitting of hairs and search for the right answer.

I read the instructions as saying a subsidized health plan is available, why would you pay extra? Therefore, not deductible.

Someone else must have decided that post tax dollars are not the same as the typical cafeteria pre-tax dollars used for many health care plans. I can also see that as reasonable.

It is not a current employer, it is not pre-tax dollars, you could claim it with the understanding an IRS auditor may disagree. You may decide to not claim it. These are your options in an area that is not clearly defined.  @bushdl30