Your Tax Questions Answered
Self Employed Health Costs
Kiplinger editorial director Kevin McCormally and fellow tax experts Peter Blank and Mary Beth Franklin tackle your most pressing tax challenges.
April 14, 2009
QUESTION: I am a self-employed building contractor. I am doing my own taxes on Turbo Tax. How do I enter my health insurance premiums and other medical expenses? Does it matter if this is all done on a Schedule A? -- NK
KEVIN ANSWERS: As a self-employed taxpayer, you may qualify to deduct your health
insurance premiums as an adjustment to income on the face of the 1040
instead of as an itemized deduction on Schedule A.
The advantage is you don't have to reduce adjustments to income by 7.5% of adjusted gross income...the limit that applies to deductible medical expenses. Now, you can't use the adjustment to income deduction if you (or your spouse, if you're married) has access to health insurance at work.
Work through the TurboTax interview to get the deduction in the right place.
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Reader Comments (1)
Posted by: steve at 11/13/2009 09:53:33 AM
Can I set up a medical flex acct if I am self employed?? Can that be funded anytime before the end of tax year?