Cobra - Wife’s LLC

[ILLMAS]

Husband lost job and has been paying Cobra, can the wife’s LLC pay the premium?  Wife and family are under the policy, husband is not an owner or shareholder of the LLC.  From the research I have done, it seems the policy has to be under the wife’s name.

Thanks

[BrewOne]

This topic just came up at the NAEA board.  For self-employment deduction, it appears the policy needs to be in the name of the proprietor.  Pub 535

[BrewOne]

Page 88 of instructions for 1040 (for Schedule C or F), policy can be in your name or the name of your business.

[Lee B]

In addition, the taxpayer cannot be eligible to participate in a subsidized health plan maintained by either the taxpayer's employer or the spouse's employer,

which would not include Cobra Continuation since it's not subsidized.