Form 1099-Misc

[Christian]

A client has come in with a Form 1099-Misc for over $19,000 reported as Nonemployee compensation. I will fill out the SE to pay self employment tax. My question is whether he qualifies to decuct healthcare premiums on Form 1040 schedule 1 line 16. I would think he would having to pay SE tax but can find no reference to say so.

[Possi]

Was that his only income with no other employer offering insurance through employment? 

If so, then yes. He is self employed and gets the deduction. 

 

[Christian]

No one else carries any insurance on him except Social Security which I understand to be deductible for Schedule C filers like me. He purchases additional drug insurance but my reading is drug policies are non-deductible.

[Lee B]

I was not aware that social security provided any insurance ?

[Christian]

I should have stated Medicare insurance which as you know is shown on the annual Social Security  SSA-1099. I deduct this every year myself. This client has multiple other health related policies. Drug, dental, vision and a policy through another carrier. My reading of the law indicates only primary health insurance is deductible but I have known other tax folks who disagree and deduct them in toto on line 16.

[Lee B]

Health Insurance, Dental Insurance, Long Term care Insurance & all Medicare premiums. (Pub 535 )

[Christian]

Interesting  this looks to have been expanded since the last time I checked which was a long time ago. It's a seldom used benefit as not many of my folks post a profit  .