Where do I deduct Health Insurance Premiums for a Sole Shareholder?

Question

In the publications I've read, it said for sole shareholders of an s-corporation NOT to deduct health insurance premiums pre-tax from their payroll checks. However, I am working on our 2006 taxes and don't see where we will claim this medical insurance expense. Am I just missing something obvious? Where do I report this ... and I'm pretty sure it's not combine with "medical expense" because we don't have to reach the 7.25% of AGI threshhold.

Answer 1

This gets deducted on Form 1040, line 29 (self-employed health insurance deduction). It is subtracted from gross income to arrive at your AGI.

it is NOT included with medical expense as an itemized deduction on Schedule A.

here is a link to Form 1040 and its instructions.
http://search.irs.gov/web/query.html?col=allirs&charset=utf-8&qp=&qs=-Wct%3A%22Internal+Revenue+Manual%22&qc=&qm=0&rf=0&oq=&qt=1040

Answer 2

The respected wording that determines no remember in case you may deduct the expenses on the front of the 1040 or basically schedule A (after deducting 7.5% of your AGI) is as follows: different coverage. you may not take the deduction for any month you have been eligible to take part in any company (which is composed of your substantial different's) backed well being plan at any time for the time of that month. This rule is utilized one after the different to plans that furnish long-term care coverage and plans that don't furnish long-term care coverage. besides the shown fact that, any medical coverage funds not deductible on style 1040, line 29, could be included as medical expenses on schedule A (style 1040), Itemized Deductions, in case you itemize deductions. So the determining word for you is "backed." If the corporate became contributing *something* in the direction of that $15,000 deal, you may basically use schedule A.. If it became organic bypass with the aid of, you may circulate above the line.

Answer 3

is their aform to use

Answer 4

tma is right. Remember you can only deduct it to the extent of the profits in the S-Corp. So if you have a $5,000 profit flowing through to your 1040 and $7,000 health insurance, you can only deduct $5,000.