1040 line 29 (Self Employment Health Insurance)

[ihot]

What is the name of your state? CA

I am a software consultant and my client pays my fees for my services to my S Corp. My S corp in turn pays wages to me. I am 100% owner of my S Corp and the only employee. I pay premiums on Medical Health insurance and am wondering if these are deductible? If they are, do I enter them directly into 1040 line 29 (Self Employment Health Insurance) ?
Thanks in advance

 

[LdiJ]

What is the name of your state? CA

I am a software consultant and my client pays my fees for my services to my S Corp. My S corp in turn pays wages to me. I am 100% owner of my S Corp and the only employee. I pay premiums on Medical Health insurance and am wondering if these are deductible? If they are, do I enter them directly into 1040 line 29 (Self Employment Health Insurance) ?
Thanks in advance

Who pays the premiums? You, or your S-corp?

 

[ihot]

any way to deduct my healt insurance premium?

Hi,
My S corp paid the premium but the insurance is held in my name. My tax accountant told me that there is no way for me to deduct my health insurance premiums. I am just trying to find a way to deduct on 1040 line 29.
My S corp could deduct the premium, but it will have to report that as income on my W2 - which means I still end up not being able to deduct my health insurance.
Is it true that if I file schedule A, I don't think I will get a deduction there as well because my total "medical expenses plus insurance premium" does not exceed 7.5% of my AGI ?

Thanks in advance

 

[LdiJ]

Hi,
My S corp paid the premium but the insurance is held in my name. My tax accountant told me that there is no way for me to deduct my health insurance premiums. I am just trying to find a way to deduct on 1040 line 29.
My S corp could deduct the premium, but it will have to report that as income on my W2 - which means I still end up not being able to deduct my health insurance.
Is it true that if I file schedule A, I don't think I will get a deduction there as well because my total "medical expenses plus insurance premium" does not exceed 7.5% of my AGI ?

Thanks in advance

Read this:

http://www.irs.gov/businesses/small/article/0,,id=157049,00.html

It looks to my like your accountant is right, because the insurance was purchased in your name rather than the S-corp's name. If the insurance was purchased in the S-corp's name, then the S-corp would take a deduction for the insurance, add it to your W2, and then you would be able to take a line 29 deduction on your 1040.

This would effectively give you the deduction you are seeking, because the S-corp income would be reduced, and you could also again deduct the insurance on line 29.

 

[ihot]

thanks for your help

Hi,
I called IRS and got the same answer that you posted. It was different than what my tax accountant's answer. Thanks so much for your help.
Just curious - what is your profession? Are you a tax lawyer? What is the reason for your being so generous (helping little guys like me out) ?