I have W2 and 1099. I pay health insurance premiums through my employer. Since I have 1099 can I claim the premiums I pay at my W2 job?

[ChristinaS]

Claim as aSelf-Employed Health Insurance deduction?

[ivanamiticcrna]

Can I do that?

[ChristinaS]

I was just clarifying if that was your question... I will respond in a bit.

[Lisa995]

Health insurance through an employer is generally "pre-tax" so you wouldn't be able to use it for another deduction as Self Employed Health Insurance.

[ChristinaS]

You cannot claim a Self-Employed Health Insurance Deduction for medical premiums that come out of W2 income.

There are several reasons for this:

1/ The insurance is not established under your business if it comes out of W2 pay

2/ Your health insurance costs are likely already not taxed due to Section 125

3/ You cannot take a SE Health Insurance deduction if you were eligible for W2 job insurance

Under no circumstances would you be able to deduct your W2 job premiums for this purpose.

[ChristinaS]

Other coverage.   You can’t take the deduction for any month you were eligible to participate in any employer (including your spouse's) subsidized health plan at any time during that month, even if you didn’t actually participate. In addition, if you were eligible for any month or part of a month to participate in any subsidized health plan maintained by the employer of either your dependent or your child who was under age 27 at the end of 2016, don’t use amounts paid for coverage for that month to figure the deduction.
<a rel="nofollow" target="_blank" href="https://www.irs.gov/publications/p535/ch06.html#en_US_2016_publink1000208842">https://www.irs.gov/pu...>

Its a "NO" on pretty much every level.

[DawnP]

This person is asking if they can deduct it as self-employed health insurance because they are paying for it - not the company.  It is not pretax or subsidized.

[Karen1987]

I have the same question and I’m not been able to find an accurate response. But this is what the person is actually asking.

[KarenL]

You may want to confirm with your employer that it is not actually subsidized or taken pre-tax.  If the plan is "employer sponsored" and premiums are withheld from paychecks, then one or both are likely true.  

[Opus 17 · Accepted solution]

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@Karen1987 wrote:

I have the same question and I’m not been able to find an accurate response. But this is what the person is actually asking.

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First of all, the small business health insurance deduction is only allowed when the policy is owned in the name of the small business/sole proprietor.  With employer-provided coverage, the policy is owned or in the name of the employer, and is never eligible for the small business deduction even if the W-2 employee is also self-employed.  (If the employee dropped their employer coverage and bought private coverage in their own name, that would be eligible.)

Second, most employers deduct health insurance premiums pre-tax.  That means the employee can't use any other tax provision, regardless of the rules.  Pre-tax premiums can't be used as an itemized deduction because you can't subtract an item from your income if is was never included in income in the first place.  Likewise, employer pre-tax premiums can't be used for ACA credits or the small business deduction.

[Karen1987]

The health insurance premiums are through the employee's name and the 1099 is from a separate company than the W-2. Anybody?

[Opus 17]

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@Karen1987 wrote:

The health insurance premiums are through the employee's name and the 1099 is from a separate company than the W-2. Anybody?

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You are replying to an old discussion about someone who had medical insurance through their employer and you said "I have the same situation."  What exactly are the details in your case?

If the taxpayer goes to an insurance company and buys coverage in their own name and pays the premiums out of pocket, and they are a schedule C small business, they can use the small business health care tax credit, even if they are also a W-2 employee of another business.  They can't use the small business health care tax credit to claim a credit for any premiums they pay for an employer-sponsored insurance plan. 

https://www.irs.gov/affordable-care-act/employers/small-business-health-care-tax-credit-and-the-shop...