Can I deduct COBRA health insurance premiums paid while self-employed?

I left a regular job in early 2012 and elected to pay out of pocket to continue my health insurance coverage. For the remainder of the year, I worked for myself doing independent contractor work (I received 1099-MISC). Can I deduct the premiums I paid for COBRA coverage from my old employer while I was working as an independent contractor?

    You will need to purchase and use TT Home and Business version but yes,.... you can deduct up to 100% of health insurance premiums for you, your spouse and your dependents if you are self-employed and have a net profit from the business for which you created the plan.    


    You may also include health insurance premiums you made for your dependents who were under age 27 at the end of 2012.

    • Ok, this didn't answer my question. My question specifically relates to COBRA premiums paid for an insurance plan with a previous employer.
    • If the premiums were paid against W2 income then you would deduct this expense on Schedule A as an itemized deduction.   There is however a catch,....You can only deduct the portion of your schedule A medical expense that exceeds 7.5% of your adjusted gross income.  This is a severe restriction so it is much better to deduct medical expense you paid while earning business income.   Long story short you can deduct the premium you paid while self employed as a business expense otherwise you must deduct them on your schedule A part of an itemized deduction.....
    • I have the same situation.  I earned W2 wages the first 2 months of 2012, but was laid off and the company brought me back as an independent contractor.  My earnings were 1099-MISC for the last 10 months of 2012.  My health insurance was discontinued the month that I was laid off, and I paid COBRA premiums (non-subsidized, 100% plus 2% admin fee) for the last 10 months to the company's third party administrator.  

      I researched this issue for some time when preparing my Q4 estimated tax payment, and a Turbotax representative had advised me to deduct the non-subsidized COBRA health insurance that I paid on Schedule A subject to the 7.5% AGI exclusion since the COBRA policy was offered through my former employer and therefore is not "deemed" to be under my individual name or my self-employed business name as mentioned in IRS Publication 535 (2012):

      "The insurance plan must be established, or considered to be established as discussed in the following bullets, under your business.
      For self­employed individuals filing a Schedule C, C­EZ, or F, a policy can be ei­ther in the name of the business or in the name of the individual."

      There's a good discussion blog online stating that this is a "grey area," and it supports deducting such non-subsidized COBRA insurance paid while earning 1099-MISC income 100% under Schedule C as an adjustment to income, however:

      This is the biggest issue on my 2012 tax return, as COBRA premiums are quite expensive.  Including them on Schedule A and applying the 7.5% AGI floor would wipe out most of the deduction, however, even when combined with my actual health care costs for the year.  I would like to know if Turbotax can provide any more guidance (I am using Turbotax Home & Business 2012).  With so many people having been laid off during the Great Recession, perhaps the IRS might have clarified how unsubsidized COBRA health insurance payments made while earning 1099-MISC are to be reported, for example?  Thank you.
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