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I work as an independent contractor. I have no employees and am not incorporated. My spouse does not do work for me.

It appears that I can claim the cost of health insurance for myself and my spouse as a tax deduction, provided that the insurance plan is "established under" my business.

How can I be sure that I have a plan which qualifies under this rule?

Currently, my spouse and I have separate individual plans, with the same insurance provider.

The provider offers either group schemes, for businesses with at least 2 employees, or individual schemes, which can cover a spouse.

So, do I need simply to switch to an individual plan in my name, covering my spouse also?

Can anyone clarify what the IRS might mean by "established under" a business?


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My husband and I run a company together (technically it's his, I work for free.). We are not incorporation, sole prop. We have a health plan with BC/BS, which we do pay dearly for but not through our company. Because it technically has only one employee, it was actually cheaper to buy a private plan. The good thing is that this comes off our taxes as a direct medical expense, which seems to work out better than having just the deduction. Check it out with an accountant, but it's worked out well for us.
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