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SE-Deductable
Returning Member

What does "insurance plan must be established under your business mean" relating to self employed health care insurance premium deduction?

I am self employed and had a net profit from my business.  I want to be sure I can take this deduction.

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7 Replies
MinhT
Expert Alumni

What does "insurance plan must be established under your business mean" relating to self employed health care insurance premium deduction?

One of the conditions for health insurance premiums to be deductible is that the insurance plan must be in your name or your business' name. This is the reason why TurboTax is asking this question.

Please read this IRS document for more information:

https://www.irs.gov/uac/newsroom/dont-miss-the-health-insurance-deduction-if-youre-self-employed


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SE-Deductable
Returning Member

What does "insurance plan must be established under your business mean" relating to self employed health care insurance premium deduction?

I've read the referenced document (several times).  It states "If you’re self-employed and file Schedule C, C-EZ, or F, the policy can be in your name or in your business’ name".  Does this simply mean that it's deductible if I have a policy for myself and wife plus Medicare for me?  What is hanging me up is the meaning of a "policy being in my name".
MinhT
Expert Alumni

What does "insurance plan must be established under your business mean" relating to self employed health care insurance premium deduction?

A policy in your name is a policy where you are listed as Insured. The policy can also cover your spouse and your dependents.
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SE-Deductable
Returning Member

What does "insurance plan must be established under your business mean" relating to self employed health care insurance premium deduction?

What is meant by "plan must be in your name or your business' name"?
SE-Deductable
Returning Member

What does "insurance plan must be established under your business mean" relating to self employed health care insurance premium deduction?

Thank you, very helpful!

What does "insurance plan must be established under your business mean" relating to self employed health care insurance premium deduction?

I know it's been a while, but I am have the same situation as the OP, namely that I am not clear about the meaning of the phrase "The insurance plan must be established ... under your business."  I found this phrase in IRS Pub 535 for 2019, page 20.  The wording "under your business" is used in several other places and in several other publications, but I couldn't find an explanation or definition. 

 

My situation is this:  I am retired.  I started driving for Uber last year (2019)  My health insurance (which I've had for a few years, since I retired) is from the Federal Employee Health Benefits.  I am not a federal retiree, but have access to this plan because I was married to a federal employee for a long time.  I meet the qualifications to enroll in this plan under Spouse Equity.  This is an employer sponsored plan, I suppose, but I pay both halves of the premium, the retiree's share and the government's share.  The policy is in my name.  Since the policy is in my name, does this meet the definition of it being established "under [my] business?" 

 

Any info is greatly appreciated. 

 

RobertG
Expert Alumni

What does "insurance plan must be established under your business mean" relating to self employed health care insurance premium deduction?

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

 

IRS Pub 535 for 2019, page 20

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