How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Bill Your Own Question
Bill, Enrolled Agent
Category: Tax
Satisfied Customers: 3151
Experience:  EA, CEBS - 35 years experience providing financial advice
Type Your Tax Question Here...
Bill is online now
A new question is answered every 9 seconds

My question is about the self-employed deducting Health Insurance

This answer was rated:

My question is about the self-employed deducting Health Insurance Premiums.

IRS publication 535 Chap 6 says a self-employed individual with a net profit reported on Schedule C can deduct their health insurance premiums but "the insurance plan must be established or considered to be established as discussed in the following bullets, under the business". It then goes on to say for self-employed individuals filing a Schedule C, the insurance plan can be in the company name or in the individuals name.

My question - What determines whether the policy is considered to be established under the business? I am self-employed, show a net profit on Schedule C and have an individual health insurance policy in my name, but there is nothing in the health policy that speaks of the business or ties it to the business. Is the fact that I am self-employed and show a net profit on Schedule C automatically make the policy "established under the business?"

If the policy is in your name and you file a Schedule C as a sole proprietor then it automatically qualifies as established under the business.


Bill and 2 other Tax Specialists are ready to help you

Related Tax Questions