What I am not sure of if under these circumstances he is allowed to deduct self employed health care premiums to help off set his side business (self employed income).
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To claim the self-employed health insurance deduction, an individual must meet IRS criteria regarding employment status and income. The deduction is available to sole proprietors, independent contractors, AND freelancers. The IRS considers someone self-employed if they operate a trade or business and report income on Schedule C (Form 1040)
A key requirement is that the taxpayer must have a net profit from self-employment. The deduction cannot .............,,,exceed the earned income from the business providing the insurance (net profit less the deduction for self-employment tax and less contributions to a qualified retirement plan). Additionally, if the taxpayer is eligible for an employer-sponsored health plan—either through their own job or a spouse’s—the deduction is not allowed, even if they choose not to enroll I know this is your current situation but things can change in future years.
The deduction applies to specific types of insurance policies that provide medical care. To qualify, the coverage must be established under the self-employed individual’s business or in his name and meet IRS guidelines.
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form 7206 may be required when there is SE health insurance. The QBI deduction is limited to the net profit less the deductions specified above and less the SE health insurance deduction.
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a hobby does qualify as a business and thus if deemed a hobby no SE health Insurance is allowed. The iRS has criteria for this. The fact that the activity is profitable is not conclusive.
see
https://www.irs.gov/newsroom/heres-how-to-tell-the-difference-between-a-hobby-and-a-business-for-tax...
