FSA and health insurance

[MargaretMort]

Client is an employee and has an FSA for health. She also has a small business. She has payments to BC/BS withdrawn from her business checking account monthly. She does not participate in the employers' health plan because she has had cancer and would be unable to get health insurance or afford it when she retires in another 4 years. I have taken the BC/BS as a deduction on L. 29 in the past but noticed today that you can't take the deduction for any month in which you were eligible for health coverage at a business. (This was not a problem in 2006 because she had just taken the job and only worked a few months.)

I guess the easy question is, Can she take the BC/BS payments as a deduction against income?

Thanks in advance.

Margaret M