Question

Retirement health care premium deduction

Forum|Forum|3 years ago
November 16, 2022
2 replies
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I retired in 2021. As a retiree, I can (and have) stay(ed) on my previous employer's health care plan, paying a higher premium (then when I was working). In retirement, I have income as an independent contractor, 1099. Can I deduct my health care premiums from my 1099 income?

Critter-3

Yes you can HOWEVER it is NOT a direct Sch C deduction but an adjustment to income on the form 1040.

R

roundyjAuthor

Would this require me to itemize deductions? I do not have enough to exceed the standard deduction.

O

Opus 17

Employee

You can't take the small business heath insurance premium deduction because you are on your employer's plan. To take the small business deduction on schedule C, the plan must be in your own name.

You are allowed to deduct the premiums as a schedule A itemized deduction.

Critter-3

When you retire and stay on an employer's plan it is usually done thru a COBRA situation where you don't get a reduction on the premium ... if that is the case you can take the adjustment.