Self-employed heslth insurance

[ljwalters]

Does medicare part B qualify for the self-employed health insurance deduction. It seems to me I heard something about this at update this year, but I may be wrong.

I can't find anything today. I'm ready to quit. Never had allergies so bad. My yard is still flooding from last week and its 80

degries at 8:00 pm go figure.

Linda and buddy

[Bees Knees]

TheTaxBook, page 1-14 says:

Medicare Part B premiums. For years, tax professionals debated

whether or not Medicare Part B premiums qualified as health insurance

for purposes of claiming the self-employed health insurance

deduction. Revenue Ruling 66-216 makes it clear that the voluntary

payments under Medicare Part B are considered health insurance

premiums and thus are deductible under Section 213 as medical

expenses. However, Revenue Ruling 66-216 pre-dates the passage

of the law that made health insurance premiums an above-the-line

deduction for self-employed taxpayers. Even though it is considered

a form of health insurance, some argued it did not meet the

requirement that the health insurance plan had to be established

under the business, as required by Section 162(l)(2)(A).

The 2009 version of IRS Pub. 535 clarifies this issue by adding

the following sentence under the heading Self-Employed Health

Insurance Deduction:

Medicare Part B premiums are not considered medical insurance

premiums for purposes of the self-employed health

insurance deduction.

Then, on 1/10/2011, TheTaxBook issued an update to that page crossing out the last two sentences that quote IRS Pub 535. The update reads:

2010 Form 1040 instructions say Medicare Part B premiums can be used to figure the deduction.

Interesting the 2009 IRS instructions said Medicare Part B premiums cannot be used to figure the deduction. Then they changed those instructions for 2010 saying they can be used.

Nobody knows what the IRS will say in 2011.

[Pacun]

TheTaxBook, page 1-14 says:

Then, on 1/10/2011, TheTaxBook issued an update to that page crossing out the last two sentences that quote IRS Pub 535. The update reads:

Interesting the 2009 IRS instructions said Medicare Part B premiums cannot be used to figure the deduction. Then they changed those instructions for 2010 saying they can be used.

Nobody knows what the IRS will say in 2011.

KC posted the latest IRS position on this forum (about 2 months ago).

[ljwalters]

Thanks

Linda and buddy