FYI...I just learned through research...you cannot deduct your health insurance premiums if you're eligable for health insurance through your spouse's employer. [smallbusiness.chron.com]. This counts me out.

So what is the surprise? If you don't pay for it, you cannot claim it as a deduction.

No, I'm paying for it through "the marketplace", because it's a little less expensive than adding me to my spouses employers plan. But, since I CAN get it through my spouses employer, I'm not able to deduct my premiums through "the marketplace". At least that's the way I read it.

It does say that I cannot deduct my premiums for the "months" that I'm elegible under my spouses work plan. The only months I'm elegible are during the open enrollment, which is two months at the most. Then I'm not elegible again until the following year. So, maybe I could deduct my premiums for the remaining ten months. Although, that seems a bit sketchy to me. What do you veterans think?

Are you confusing eligibility with the open enrollment? If you are eligible to be on your spouse's plan and choose something else during open enrollment it doesn't mean you couldn't have been on the other plan for the entire year. Keep in mind, plans purchased through the market place are supposed to have a lower premium because they are income based. Instead of getting a tax deduction at the end of the year you are getting the ongoing reduced rates. Will you be able to deduct any of your premiums if you stay on your spouse's plan? If so, you should be able to compare and decide if you want the slightly lower rates all year or the larger deduction at the end of the year.

Go to IRS, not a secondary source. [www.irs.gov]


"The insurance plan must be established, or considered to be established as discussed in the following bullets, under your business.


•For self-employed individuals filing a Schedule C, C-EZ, or F, a policy can be either in the name of the business or in the name of the individual.


•For partners, a policy can be either in the name of the partnership or in the name of the partner. You can either pay the premiums yourself or your partnership can pay them and report the premium amounts on Schedule K-1 (Form 1065) as guaranteed payments to be included in your gross income. However, if the policy is in your name and you pay the premiums yourself, the partnership must reimburse you and report the premium amounts on Schedule K-1 (Form 1065) as guaranteed payments to be included in your gross income. Otherwise, the insurance plan will not be considered to be established under your business.


•For more-than-2% shareholders, a policy can be either in the name of the S corporation or in the name of the shareholder. You can either pay the premiums yourself or your S corporation can pay them and report the premium amounts on Form W-2 as wages to be included in your gross income. However, if the policy is in your name and you pay the premiums yourself, the S corporation must reimburse you and report the premium amounts on Form W-2 as wages to be included in your gross income. Otherwise, the insurance plan will not be considered to be established under your business. "

My reading of this is if the POLICY IS IN YOUR NAME or the name of your business and is paid for by your business, the deduction applies. If you are covered under your spouse's policy then the policy is not in YOUR name but rather your spouse's.

Yep...the one piece of info that I needed was left out of my original source. Thank you for your guidance, Flash, I read it the same way...I'm confident I can take the deduction now. I should have checked irs.gov first and will in the future.

Lisa...thank you for the suggestion on comparing the tax benefits for those two scenarios. I didn't think of that. Of course, being able to deduct my premiums through my business is the best course of action. But, I will remember your idea in the future, if my situation calls for it.