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Fools -- A quick question on what may be deductible on Schedule C from an insurance perspective, given a mixed W2/1099-Misc income picture.

Through my W2 job, I have access to a few health-related insurance policies, some of which are employer-subsidized, and some of which are not. Are any of the premiums at all deductible on Schedule C from the 1099-Misc work?

Long Term Care Insurance: Group plan available through the W2 employer, but paid entirely out of pocket via a check.
Vision Care Insurance: Group plan available through the W2 employer, but paid entirely out of pocket via a check.
Health Insurance: Group plan available through the W2 employer and is a subsidized benefit with auto-paycheck deductions for the employee contribution parts.

If it matters, for the unsubsidized, paid completely out of pocket insurances, no subsidized plans providing that coverage are available through my W2 work, and my wife is a stay-at-home Mom who gets all her insurance through me. Also, if it matters, the 1099-Misc job would show a net profit with or without deductions for health-related insurances.

It seems to me that LTC, Vision, and Health Insurance premiums would all be at least somewhat deductible expenses in a pure 1099-Misc income world. And absent the 1099-Misc job, I don't think the insurance premiums would be generally deductible. It's the hybrid situation that I'm not sure of, and I figure I'd ask before I either left money on the table or risked trouble by trying to take a deduction I couldn't.

Thanks in advance.

-Chuck
Inside Value Home Fool
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Are your health insurance premiums paid with before or after-tax dollars?

Donna
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Ah -- nevermind. I found what looks like a definitive no, from the IRS:

http://www.irs.gov/taxtopics/tc502.html

If you are self-employed and have a net profit for the year, you may be able to deduct (as an adjustment to income) the premiums you paid on a health insurance policy covering medical care including a qualified long-term care insurance policy covering medical care including a qualified long-term care insurance policy for yourself and your spouse and dependents. You cannot take this deduction for any month in which you were eligible to participate in any subsidized health plan maintained by your employer, your former employer, your spouse's employer, or your former spouse's employer.

Ain't it usually the case that you find what you're looking for just after you ask someone else to help?

Thanks anyway.

-Chuck
Inside Value Home Fool
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Are your health insurance premiums paid with before or after-tax dollars?

Interesting question, Donna, and one I may have to dig a little deeper into when I can get hold of the benefits department during the work day. Would it make a difference?

Thanks,
-Chuck
Inside Value Home Fool
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You could not deduct that item from any self-employment income in any event, as it is not an expense paid from your self-employment income. However, if the medical insurance is paid from pre-tax dollars, you may not deduct it. If it is paid from after tax-dollars, then you can deduct your portion of the premium under the medical expenses deduction, subject to the 7-1/2 per cent.

As far as the long-term care insurance, that too, may be deductible from your medical expenses deduction. I'm not sure re: vision insurance.

For a more complete explanation see:

http://www.irs.gov/publications/p502/index.html

Donna
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