INSURANCE HEALTH

[TAXMAN]

TP owns a farm. Pays spouse to work on farm. Files w-2 and 943"s. Actually writes her a check. She went to gov web site for insurance. TP pays premium for spouse. amounts to abought 9k for year. TP did not include them on her w-2. Question becomes can tp deduct these premiums on his sch-f? They file a joint return. I know that a 8962 is in order because the 1095a came out in tp's name with covered ind being the spouse. TP is on Medicare. Wife is not old enough. 

[Terry D EA]

Just off the cuff and without research, if the spouse is an employee the premiums paid would be deductible on Sch A. The husband/ taxpayer is self-employed and those premiums weren't paid for him so I don't see how they qualify for any SE deduction. I think partners in partnership and S-Corp shareholders are the ones who include premiums paid by the entity to be included in their respective W-2 forms. I know farms are special in many ways so maybe I am totally missing it. Something to think about.

[Lion EA]

If a Sch F is similar to a Sch C, and if my memory is not too fried tonight, a self-employed person can provide health insurance to his employee/spouse for the employee's whole family. It's deductible to the SE taxpayer, I think on Sch F, because it's for the employee. The SE taxpayer's own Medicare premiums are deductible as SE health insurance on Sch 1 line 17, income allowing, with any excess to Sch A line 1.

But, don't trust me on the above! Two more complex returns to get done, and not much sleep last night, or for the last week or more or...! So, research more yourself or wait for someone to jump in with cites for you to rely on.

[TexTaxToo]

SEHI on Sch A. is available for premiums paid for health insurance to cover the tp, spouse, dependents, and any child under 27.

Note that when Form 8962 is involved, a special calculation is needed because there is a possible circular recursion where the AGI affects the amount of PTC which in turn affects the SEHI deduction and the AGI.

 

[Lion EA]

What TexTaxToo says sounds about right. But, don't you use Sch 1 for SEHI, income allowing, with only the excess going to Sch A? And, can he use Sch F for premiums paid for an employee & her family? Yes, to the circular calculation if a PTC is in play.

[Lee B]

If the spouse is a legitimate W 2 employee of a Schedule C or F business, then the business can pay 100% of the spouse/families health insurance premium as a

fully deductible business expense which would not show up on the spouses W 2

[TexTaxToo]

22 hours ago, Lion EA said:

What TexTaxToo says sounds about right. But, don't you use Sch 1 for SEHI, income allowing, with only the excess going to Sch A? And, can he use Sch F for premiums paid for an employee & her family? Yes, to the circular calculation if a PTC is in play.

Yes, sorry, I meant SEHI on Sch 1. 

Health insurance for employees is a legitimate business expense on Sch F, but I don't know the best way to set it up.  Would they need a QSEHRA or some other "plan"?