Insurance paid through spouse
originally posted: 11/22/2006 reposted: 2/18/2011 This post has not been recently reviewed or revised by the author and may be out of date. If you notice an error or are in doubt, please send a new question by email or ask for an update. Email asktony@tonynovak.com.
Q: I am self-employed but enrolled in my spouse's group health plan at the college where she works. My business pays the premium for my coverage. Do I deduct this on my individual or corporate tax return?
A: Unfortunately neither. The IRS has taken the clear and consistent position that a self-employed individual cannot deduct the cost of group health insurance offered through a spouse's employer. This seems unfair to many because health insurance is deductible in almost every other situation. One possible work-around if you are a C corporation is to establish a Health Reimbursement Arrangement (HRA) and funnel your health care expenses that way. See FreedomBenefits.org for more information.
Summary
More resources:
www.FreedomBenefits.org