Self Employment Medicare Premiums and Private Insurance

[ibonnie]

My husband and I are retired from our jobs, and now each of us has very small but profitable businesses.  We know we can deduct our Medicare Premiums as a business expense.  We also have supplemental insurance through Kaiser we pay for each month.  Can that be deducted under regular Medical Expenses?

Thanks!

Bonnie

[VolvoGirl]

Medicare premiums are not really a business expense.  You can't deduct them on Schedule C.  But you can deduct them against your Net Profit.  You can only deduct Insurance for employees.

Self Employed health Insurance does not go directly on Schedule C so it will not reduce your Net Profit or self employment tax.

If your health ins exceeds your net self-employment income it gets split. An amount equal to your net self-employment income goes on Form 1040 Schedule 1 and the remainder gets added in to medical expenses on Schedule A.

Where to enter Self Employed Health Ins

https://ttlc.intuit.com/community/entering-importing/help/where-do-i-enter-my-health-insurance-premi...

[ibonnie]

Thanks.  Maybe I said it wrong.  Following TT instructions, I put the Medicare Premium deduction under Business Deductions and Credits/Self Employment Health Insurance Paid.   So not on Schedule C.

What I really want to know is if I can also deduct our supplemental health insurance that we pay out of pocket, either under Medical Expenses,  or can I include it with the Medicare Premiums in the same category as above, under Business Deductions and Credits?

Thanks!

[VolvoGirl]

Yes. You can enter it under Business.  

Can I deduct health ins when Self Employed?

https://ttlc.intuit.com/community/credits-and-deductions/help/can-i-deduct-my-health-insurance-premi...

Where to enter Self Employed Health Ins

https://ttlc.intuit.com/community/entering-importing/help/where-do-i-enter-my-health-insurance-premi...

[ibonnie]

OK - now I'm thoroughly confusing myself.  The schedule C did indicate the Medicare Premiums should be entered there under Self Employed Health Insurance Premiums - so it's there.

Still not sure where to put the out of pocket supplemental insurance.

Bonnie

[Cynthiad66]

Most self-employed taxpayers can deduct health insurance premiums, including age-based premiums for long-term care coverage. Write-offs are available whether or not you itemize, if you meet the requirements.

Use this LINK for more information about deducting health insurance premiums for self-employed individuals.