Tax question: Can I deduct Health insurance premiums?
Asked by: sfbs
My wife and I file a joint return. I am currently unemployed (and was unemployed all of last year). Last year (2013) my wife worked as a Independent contractor and received a 1099-misc for the money she made as a medical transcriptionist. She is considered self-employed. (She fills out a Schedule C). Line 29 of the standard 1040 states “Self-employed health insurance deduction” . Since the only health insurance we had last year was a private policy in both of our names. (for the first 10 months it was a health insurance policy under cobra from my old job which covered us both), for the last 2 months, after cobra ran out, we bought personal health coverage policy for us both, but it was listed in my wife’s name). Publication 535, as well as the instructions for Schedule C state that ” The insurance plan must be established, or considered to be established as discussed in the following bullets, under your business.
1. For self-employed individuals filing a Schedule C, CEZ, or F, a policy can be either in the name of the business or in the name of the individual.”
A policy could not be established under the business, because in my home state you cannot set up a business policy for one individual. The business must have at least 2 workers.
My question is, even though my wife could not set up a business policy, can we still take the line 29 health insurance deduction?
I called the IRS and they stated to me they weren’t sure. Contact a CPA?