cancel
Showing results for 
Search instead for 
Did you mean: 
Level 1

Can you only use marketplace insurance for self-employed health insurance if it is in your name?

I have a sole proprietorship LLC and am trying to estimate my taxes for 2018. I had to get insurance this year on the healthcare.gov marketplace. Due to which doctors are available on which plans, my wife and I are on one plan, and my children are each on another (under their names, crazy I know but it was the only way the marketplace would do it). I read that for a self-employed health insurance premium, it has to be either in my name or in the LLC's. Would the premiums for my wife's and my insurance be deductible as self-employed insurance and the kids' be under medical expenses?

2 Replies
Level 12

Can you only use marketplace insurance for self-employed health insurance if it is in your name?

Yes, you may deduct your medical premiums for a policy in your name that covers you and your spouse. Since your children are on another policy, those premiums would not be included in the Self-Employment Health Insurance Deduction. But you may report those premiums as an Itemized Deduction for Medical Expenses on Schedule A.

Per IRS Pub 535 Self-Employed Health Insurance Deduction: "You may be able to deduct the amount you paid for medical and dental insurance and qualified long-term care insurance for yourself, your spouse, and your dependents. [snip] For self-employed individuals filing a Schedule C, C-EZ, or F, a policy can be either in the name of the business or in the name of the individual."

Highlighted
Level 3

Can you only use marketplace insurance for self-employed health insurance if it is in your name?

The cost of your medical insurance is deductible, but medical insurance for your wife and children are not a tax deductible expense (I'm assuming your wife is not an employee of your LLC). 

Medical expenses (doctor visits, medications, etc.) are deductible on Schedule A for all of you to the extent they exceed 7.5% of your AGI.

Hope this helps!