Self Employed Health Insurance Deduction

[jasdlm]

Client is new to me. Previous tax preparer took HI premiums (paid by Wife through her employment at the University) on line 29. I did not think he was eligible for the deduction, since he was eligible (and in fact did participate) in wife's employer's subsidized plan.

Previous prepare is a very well-respected CPA who has been practicing far longer than I have, so I am questioning my understanding of the rules.

The employer plan is subsidized, but only to the extent of the employee's coverage. (University pays part of Employee's premium; allows family policies, but only pays same portion as if employee was single). Is my client's premium deductible because technically it is 'not subsidized', even though it is one plan for which client's spouse is subsidized?

Any advice is appreciated.

[jklcpa]

The health insurance plan to which premiums are paid must be established under the self-employed person's business. Those premiums paid to spouse's employer's plan do NOT qualify for the deduction.

In fact the test is more stringent: the deduction is also NOT permitted for any month in which the self-employed person is ELIGIBLE to participate in any subsidized plan by an employer of the taxpayer or their spouse's employer.

Deduction is also limited to the net earnings from self-employment.

[jasdlm]

Thank you very much for your response. I couldn't figure out how this fit with the rules, but like I said, the previous preparer has much more experience, and I was afraid I was missing something.

[SCL]

also, for many years most employee health ins costs in larger companies (smaller companies too) are pretax deductions from gross wages - no deduction anyway.