Income Tax Fundamentals 2020
38th Edition
ISBN: 9780357391129
Author: WHITTENBURG
Publisher: Cengage
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Chapter 5, Problem 4MCQ
Which of the following is true about the self-employed health insurance deduction?
- The deduction can be claimed when a subsidized employer health insurance plan is also available.
- The deduction can be claimed if the taxpayer has an overall business loss from self-employment.
- Long-term care premiums may not be deducted within specified dollar limitations based on age.
- The self-employed health insurance deduction is a for AGI deduction.
- Dental insurance is not included as deductible self-employed health insurance.
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Students have asked these similar questions
Which of the following is true about the self-employed health insurance deduction?
a.The deduction can be claimed when a subsidized employer health insurance plan is also available.
b.Long-term care premiums may not be deducted within specified dollar limitations based on age.
c.Dental insurance is not included as deductible self-employed health insurance.
d.The deduction can be claimed if the taxpayer has an overall business loss from self-employment.
e.The self-employed health insurance deduction is a for AGI deduction.
A self-employed taxpayer may be eligible to deduct amounts paid for medical insurance for themselves and for their families, as long as neither they nor their spouse were eligible for employer-sponsored health insurance. To claim this deduction, a qualifying taxpayer should:
1 Claim a nonrefundable tax credit based on the cost of the insurance.
2 Deduct the cost of the health insurance premiums as a business expense on Schedule C.
3 Only deduct the health insurance costs on Schedule A if they itemize their deductions.
4 Report the health insurance costs, up to the amount of net business income, as an adjustment to income on Schedule 1 and on Form 1040.
One limitation, on the deduction for self-employed insurance, is that taxpayers cannot
deduct the premium cost that exceeds net earnings from self-employment.
Select one:
True
False
Chapter 5 Solutions
Income Tax Fundamentals 2020
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