I am self-employed and deduct my health insurance premiums (line 29, Form 1040). Last year I received a health insurance premium rebate check. I know this is to be treated as income for this past year, but I am not sure where to put this on my 2012 tax forms. Is it "Other income" Line 6 on Schedule C? I know a tax preparer who is simply subtracting the amount of the rebate check from the 2012 premiums paid. Is that OK?I am using TurboTax and there was no explicit guidance about this. Other TurboTax users have posted this question, but I haven't seen it answered.Can anyone help? Thanks in advance.
Because you deducted your prior year health insurance premiums as a self-employed person, I'd include this rebate as income on line 21 (other income). I'm sure it does not go on schedule C, as it was never deducted there.From a bottom line perspective, you get exactly the same result if you include it on line 21 or if you deduct it from the current year premiums. I simply prefer the better disclosure to the IRS of the rebate by putting it on line 21.--PeterPS - For lurkers, you get a somewhat different answer if you are not self employed. I'd still put it on line 21, but only to the extent you were able to deduct the premium on Schedule A in a prior year.
Peter,Thanks for your help! That makes sense to me.
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