Health Care

Health Care

How do health care reform and taxes connect? The Affordable Care Act is single largest change to the tax code in two decades. Find help navigating the complexities of the new health care legislation, Medicare, Medicaid and other medical deductions.

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Pioneer
Posts: 1
Registered: ‎04-17-2017

Recently retired and now paying full premium for health care to former employer.

Since I am self-employed, but do not pay for any other insurance except long-term care, can I now write-off the premiums (after tax-paid to former employer) under the self-employed area of the tax forms?  This is a change since retirement because my former employer had allowed me to use pre-tax monies for the premiums in an HSA.

 

Thanks for any advice.

Tax Pro
Posts: 5,531
Registered: ‎02-23-2016

Re: Recently retired and now paying full premium for health care to former employer.

Hi skd9608,

 

Welcome to the H&R Block community.

 

For the self-employment deduction you may deduct any premiums that you pay out-of-pocket (after-tax) for a plan established under your business.  If the plan is established through the marketplace under another or entity or person other than your business the deduction goes on Schedule A.  The self-employment deduction is equal to the lesser of (1) the premiums you paid, or (2) your income less 1/2 of the self-employment tax less your retirement contributions.

 

So yes, you can deduct your premiums directly on the 1040 so long as your insurance plan was established under you business.

 

If you have any other questions I'll be glad to help.

 

Louis,

Senior Tax Advisor (Tampa, FL)