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Stacey1403
Where it all began....
Member since 5/05 24065 total posts
Name:
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Tax Question?
Are COBRA payments deductible?
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Posted 2/9/08 9:24 AM  |
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jerrysgirl
I love my hot dog!!
Member since 6/06 5357 total posts
Name:
E & J
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Re: Tax Question?
yes they should be an itemized deduction on schedule a in medical deductions.
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| Posted 2/9/08 9:30 AM |
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Stacey1403
Where it all began....
Member since 5/05 24065 total posts
Name:
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Re: Tax Question?
You just made my day!!!
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| Posted 2/9/08 9:31 AM |
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jerrysgirl
I love my hot dog!!
Member since 6/06 5357 total posts
Name:
E & J
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Re: Tax Question?
Health insurance payments are generally allowed as a medical deduction if you itemize your deductions and your total medical expenses, such as premiums, co-pays, deductibles, transportation and medication, exceed 7.5 percent of your adjusted gross income.
A self-employed individual is allowed to deduct health insurance coverage as an adjustment to adjusted gross income rather than as an itemized deduction subject to the AGI limitation. This means that a self-employed individual can benefit on his or her tax return from the payment of health insurance coverage without regard to itemizing deductions or exceeding the threshold. However to qualify for this deduction the insurance plan must be established under your trade or business. Since the COBRA coverage was not established under your trade or business, the health insurance payments would appear not to qualify for this above-the-line deduction to arrive at AGI.
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| Posted 2/9/08 9:31 AM |
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