Question

Health Insurance Premium deduction Qualification

Forum|Forum|5 years ago
April 17, 2021
1 reply
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I am self Employed and own both an S Corporation and an LLC. My wife is employed through a large company which offers health care to its employees and family members. The cost is excessive for the family, I really mean that ($24k for the year in premiums with a very high deductible), so we have obtain a plan at about 1/3 of the cost with better coverage for the family including my wife. We received a 1095-c from the company with code 1A in box 14. does this prevent us from utilizing the Health Insurance Premiums deduction on schedule 1 line 2a? If it does am I able to deduct the cost of the Doctors, Prescriptions and Labs from the same form?

A

AmeliesUncle

I assume you mean Line 16 of Schedule 1. 🙂

If the insurance is "subsidized" by the employer (the employer pays ANY portion of the full cost, which almost every employer does), no, you don't qualify for the Self Employed Health Insurance deduction.

No, only insurance qualifies for the Self Employed Health Insurance deduction. Other out-of-pocket medical costs go on Schedule A (and due to severe limitations, that deduction might not reduce your taxes).