MargaretMort Posted February 4, 2011 Report Share Posted February 4, 2011 I finally decided to start preparing my own income tax return yesterday though I am still waiting for one final 1099. AND I am back to trying to figure out just how to show the Medicare held out of my SS as a deduction on my Form SE. Are we supposed to include it on the 1040, Line 29, which is then deducted from the Sch C net? In that case, we are getting the deduction against Self Employed taxes and Total Income. I went back and re-read my earlier question and the help given, the agreement is that we get to take this deduction but nowhere can I find the exact place to show it. The IRS site that was mentioned isn't there any more and nothing else that I read answered my question. As always, my thanks in advance. Hope this isn't a precursor of what I will run into for the next couple of months. MM Quote Link to comment Share on other sites More sharing options...
grandmabee Posted February 4, 2011 Report Share Posted February 4, 2011 it goes on front page of 1040 and then will auto flow to the SE. it works same as any other SE health insurance paid Quote Link to comment Share on other sites More sharing options...
grmy2h Posted February 4, 2011 Report Share Posted February 4, 2011 Are we supposed to include it on the 1040, Line 29, which is then deducted from the Sch C net? This is correct and it is shown as an adjustment on line 29, it does not actually flow to the C itself. Quote Link to comment Share on other sites More sharing options...
jainen Posted February 4, 2011 Report Share Posted February 4, 2011 >>the agreement is that we get to take this deduction<< See what happens when I take a month or two off? I would never have let such a statement go unchallenged. The authors of The Tax Book are pompous idiots--if you aren't using Quickfinder, you deserve the bad information you get. Yes, this year the instructions to Form 1040 say "can" in a paragraph that has said "cannot" forever. That is an obvious typo, not a change in the IRS position. Instructions have no authority, so can you point to any actual ruling that supports this deduction? Quickfinder cites its sources exactly; where does TTB send you for verification? The IRS position has been steady since the Chief Counsel decision in 1995. Medicare is not "established" under your sole proprietorship. Immediately after that flawed paragraph, the instructions refer us to Pub 535 where it says in italics "Medicare Part B premiums are not considered medical insurance premiums for purposes of the self-employed health insurance deduction." Let's see if the wording gets changed there too, when Pub 535 is updated next month. Quote Link to comment Share on other sites More sharing options...
Lynn EA USTCP in Louisiana Posted February 4, 2011 Report Share Posted February 4, 2011 >>the agreement is that we get to take this deduction<< See what happens when I take a month or two off? I would never have let such a statement go unchallenged. The authors of The Tax Book are pompous idiots--if you aren't using Quickfinder, you deserve the bad information you get. Yes, this year the instructions to Form 1040 say "can" in a paragraph that has said "cannot" forever. That is an obvious typo, not a change in the IRS position. Instructions have no authority, so can you point to any actual ruling that supports this deduction? Quickfinder cites its sources exactly; where does TTB send you for verification? The IRS position has been steady since the Chief Counsel decision in 1995. Medicare is not "established" under your sole proprietorship. Immediately after that flawed paragraph, the instructions refer us to Pub 535 where it says in italics "Medicare Part B premiums are not considered medical insurance premiums for purposes of the self-employed health insurance deduction." Let's see if the wording gets changed there too, when Pub 535 is updated next month. Jainen, this is NOT a typo. It is a reversal of position. One of my NAEA peers corresponded with the person that re-wrote that section of the rules, and the reversal of position has been confirmed. Lynn Jacobs, EA, FNTPI, NP Kenner, La Quote Link to comment Share on other sites More sharing options...
jainen Posted February 4, 2011 Report Share Posted February 4, 2011 >>One of my NAEA peers corresponded with the person that re-wrote that section<< That's great news! So what's the citation? Quote Link to comment Share on other sites More sharing options...
grandmabee Posted February 4, 2011 Report Share Posted February 4, 2011 Quickerfinder also put out a correction to their book stating it was a change. I think it is also on QF website. Quote Link to comment Share on other sites More sharing options...
cred65 Posted February 5, 2011 Report Share Posted February 5, 2011 See what happens when I take a month or two off? Achtung Jainen, and Welcome back! After you have taken the liberty to insult the tax intelligence of members of this board, it appears that you would not allow almost any grey area deduction and even possible legitimate deductions. The members of this board feel that they represent the TP, but the advice you give generally seems to support the oppostion (Feds). So who's side are you on? Even though your knowlege of the overall tax system exceeds that of most of us combined, so rather than treat the members as a bunch of dumb ars's why don't you little up a litle bit and treat us as peers. I'm going to drink some vodka: OUT Quote Link to comment Share on other sites More sharing options...
jainen Posted February 5, 2011 Report Share Posted February 5, 2011 >>a correction to their book<< That is true. In the olden days, all we had were a few thin instruction booklets and the mighty Pub 17, with a $50 book called Master something. The biggest firms had very expensive research services, though the code wasn't even that convoluted. Only lawyers worried about esoterica like Chief Counsel Advisories. Now we can google the whole tax code before getting out of bed in the morning. And so can our clients. And meanwhile the whole legal structure beyond the code has gone crazy. And so have our clients. So why are professionals still turning to the thin booklets for authority? Quote Link to comment Share on other sites More sharing options...
mcb39 Posted February 5, 2011 Report Share Posted February 5, 2011 Because serious professionals want to get it right. And that is also why we turn to this board. I have to cringe when I see the ads for Turbo Tax, Tax Act, etc. They are telling people that they can do it themselves, no problem! Those ads are certainly not in the interest of small business; but, then, the corporates will always try to kill us. Quote Link to comment Share on other sites More sharing options...
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