Personal Health care vs. Business Expense?

[littleneil]

Spouse is self employed and paid both Tricare-Prime premiums and 2 months worth of Medicare Part B Premiums in 2016. Are those payments on the business expense side or on the personal health care side?

[Coleen3 · Accepted solution]

Edited 3/13/2017

You can take a deduction for Medicare. When entering information from the 1099-SSA, do not enter medicare payments there.. The Tricare may be on the business side if it meets the qualifications below.

Starting in tax year 2011, this deduction is no longer allowed on Schedule SE (Form 1040), but you can still take it on Form 1040, line 29.

You must be one of the following to qualify:

• A self-employed individual with a net profit reported on Schedule C (Form 1040), Profit or Loss From Business, Schedule C-EZ (Form 1040), Net Profit From Business, or Schedule F (Form 1040), Profit or Loss From Farming.
• A partner with net earnings from self-employment reported on Schedule K-1 (Form 1065), Partner's Share of Income, Deductions, Credits, etc., box 14, code A.
• A shareholder owning more than 2 percent of the outstanding stock of an S corporation with wages from the corporation reported on Form W-2, Wage and Tax Statement.

The insurance plan must be established under your business. 

• For self-employed individuals filing a Schedule C, C-EZ, or F, the policy can be either in the name of the business or in the name of the individual.