Question

Self-employed deduction for medical expenses when medical plan is through my former employer

Forum|Forum|2 years ago
April 2, 2024
1 reply
0 views

I am retired and my wife now has a part time gig providing contract review services and is self-employed and the work is regular (i.e., she works and bills every month. She receives a 1099-NEC for this income from her sole customer. We get our health insurance from my former employer (retiree medical plan) as we are not of medicare age yet. The plan is not subsidized by my former employer and is provided at cost, if that makes a difference. Can we deduct the cost of this plan for my wife, myself and my son (who is 24 so under the age 27 cut-off)? The amount paid for the medical premium is (marginally) less than the earnings. I have not taken this deduction in prior years, but am thinking we are entitled to, but I am not certain since the plan is provided through my former employer.

M

MinhT1

If you wish to deduct the self-employed health insurance, the insurance policy must be either in the name of the business or in your own name.

It can't be through your former employer.

The IRS says in this document on page 1:

For self-employed individuals filing a Schedule C (Form 1040) or F (Form 1040), a policy can be either in the name of the business or in the name of the individual.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

J

John DAuthor

The policy is with Anthem Blue Cross Blue Shield through the former employer and the names each of the people covered under the policy (the three people's names being: wife (who has the income), husband (who was employed by company that provides access to the policy) and a son who is under 27. Does this not meet the criterion of the name of the person for the policy?

J

JotikaT2

No. If the insurance is obtained through a former employer, it is still considered to be an employer-subsidized health plan and therefore, would not be eligible as a deduction on your tax return as part of your self-employed premiums.

Please see this tax tips article for more details on when you can deduct the premiums for purposes of your self-employed deduction.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"