Deducting health insurance premiums for self-employed

[walshpjw]

We have a client who is "retired" from employer of 30 years. He now owns own consulting firm that he started and is sole employee. The prior employer offers their health plan to retirees, and he participates because it's a great plan. Can he deduct those premiums as part of his new business?

[Marketstar · Accepted solution]

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

 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, you cannot take the deduction for that month. However, payments for those months are deductible on Schedule A if you itemize deductions.

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.  Any extra self-employed health insurance payments will be included with your medical expenses on Schedule A, Itemized Deductions