Skip to main content
Level 7
April 13, 2022
Solved

self-employed's health insurance premiums

  • April 13, 2022
  • 4 replies
  • 30 views

If the spouse's employer covers a self-employed's health insurance via a family plan, then it's not deductible via Sch C, the rationale being that he has the advantage of group insurance. Still true? Seems like Medicare and ACA are group insurances as well, but are deductible.

This topic has been closed for replies.
Best answer by qbteachmt

"the rationale being that he has the advantage of group insurance."

The rule is who Established the plan. Not that it is Group. For a self-employed person, you are the plan, it's in your name or the business (which often can't establish this plan) or you are the person on Medicare. That's why you qualify for it as business Health deduction.

4 replies

Just-Lisa-Now-
Intuit Community Champion
April 13, 2022
A plan through the spouses employer does not count. Medicare and ACA are in the taxpayers name, not the employer's group plan.
♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
qbteachmt
qbteachmtAnswer
Level 15
April 13, 2022

"the rationale being that he has the advantage of group insurance."

The rule is who Established the plan. Not that it is Group. For a self-employed person, you are the plan, it's in your name or the business (which often can't establish this plan) or you are the person on Medicare. That's why you qualify for it as business Health deduction.

Don't yell at us; we're volunteers
April 13, 2022

I suspect the main rational of Congress was that the employer insurance is pre-tax.  So you can't deduct it AGAIN for self employed health insurance.

GretaAuthor
Level 7
April 13, 2022

Yes, that makes sense.