Deducting health insurance as W2 Employee and Self-Employed at the same time?

[jdenec123]

Hi there, I have a question that I haven't been able to answer through my own research.

I understand self-employed individuals may deduct health insurance premiums for themselves, spouses, and dependents for income tax (I believe this income is still subject to the 15.3% self-employed tax, correct?). However, W2 employees can only deduct health insurance if it exceeds 7.5% of income. 

I currently work full time under my employer, but also run a side business as a sole proprietor building websites and doing basic IT work.

Am I able to deduct my wife and I's health insurance from specifically the self-employed income? Or, because my business is a sole proprietorship, do I add the incomes together and the "exceeds 7.5% of income" rule applies?

Thanks in advance for your help!

[VolvoGirl]

Do you get the  health ins from your W2 work?  Or do you buy health ins separately?  If you buy it on your own separately from employer provided ins you can deduct it from your self employment income.

Self-employed health insurance policies must be in the name of the business. Sole proprietor can meet this requirement if the policy is in their name. COBRA policies are in the name of the former employer and do not qualify for the self-employment health insurance deduction. Medicare plan B payments are qualified as Self-employed medical insurance premiums and should be entered here instead of in the Social Security Benefits section. 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.

Deducting Health Ins for the Self Employed
https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-credits-deductions/deduct-health-ins...

Self-employed health insurance deduction goes on Schedule 1 line 17 (which goes to 1040 line 10), as long as the expense is not greater than your net self-employment income. If it does exceed your net self-employment income it gets split automatically. An amount equal to your net self-employment income goes on Schedule 1 and the remainder gets added in to medical expenses on Schedule A. It will not reduce any SE Tax on a net profit. It just reduces your AGI.