As owner of a single member LLC can I claim my medical insurance payments as a business expense?

Forum|Forum|1 year ago
November 8, 2024
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I read this article: https://turbotax.intuit.com/tax-tips/home-ownership/deducting-health-insurance-premiums-if-youre-self-employed/L6bRhLaVE

I am leaving my W2 job to startup my own business. I understand I have 3 options for medical insurance:

- COBRA through my existing employer

- go on my spouse's health plan (spouse has W2 job with another company)

- purchase my own insurance. How? Is this what Obamacare is (pardon my ignorance)?

Also which of these options are eligible for being claimed as a business expense or other type of deduction on my tax return?

The linked article says:

You can't claim the health insurance premium write-off for months when either you or your spouse were eligible to participate in an employer-subsidized health plan.

So does that mean even if I were to choose Option 3, I would still not be able to deduct my medical insurance expenses on my tax return?

Thanks!

Not A Product Question

rjs

Employee

@siddjain1 wrote:

So does that mean even if I were to choose Option 3, I would still not be able to deduct my medical insurance expenses on my tax return?

Yes, that's what it means. The article is talking about the Self-Employed Health Insurance deduction for people who are self-employed. That would include a single-member LLC (provided that the LLC does not elect to be treated as an S corp). But you cannot claim that deduction if your spouse is eligible for employer-subsidized health insurance. Almost all employer-provided health insurance is subsidized by the employer. It doesn't matter whether your spouse is actually enrolled in the employer-subsidized health insurance. Just being eligible for it prevents you from taking the Self-Employed Health Insurance deduction.

Your best option is probably to go on your spouse's employer-provided insurance.