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bill32
New Member

Hi folks, I have an LLC but my two clients (interim jobs) paid me via W-2 (no benefits). So my LLC has zero revenue. How can I charge my health insurance?

I earned income from two interim engagements this year.  Both decided to pay me via W-2 for their convenience (I got no benefits except FICA match).  However, since I was not paid 1099 it isn't showing on the Schedule C and therefore I am losing money and can't get credit for health insurance premiums.  I earned significantly more income than the premiums, it just isn't on the Schedule C form.

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MinhT
Expert Alumni

Hi folks, I have an LLC but my two clients (interim jobs) paid me via W-2 (no benefits). So my LLC has zero revenue. How can I charge my health insurance?

As you received forms W-2, you are considered as an employee.

I understand your situation, but as your self-employed business did not generate any income, you cannot deduct your health insurance premiums as self-employed health insurance.

Your insurance premiums can however be deducted as Medical expenses.

Medical Expenses are subject to the 7.5% rule and you can only claim the excess over 7.5% of your Adjusted Gross Income.

Please note that Itemized Deductions will only "help" when they exceed your standard deduction.


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MinhT
Expert Alumni

Hi folks, I have an LLC but my two clients (interim jobs) paid me via W-2 (no benefits). So my LLC has zero revenue. How can I charge my health insurance?

As you received forms W-2, you are considered as an employee.

I understand your situation, but as your self-employed business did not generate any income, you cannot deduct your health insurance premiums as self-employed health insurance.

Your insurance premiums can however be deducted as Medical expenses.

Medical Expenses are subject to the 7.5% rule and you can only claim the excess over 7.5% of your Adjusted Gross Income.

Please note that Itemized Deductions will only "help" when they exceed your standard deduction.


**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
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