Question I am self employed and I pay for my insurance and my husband's insurance. I wanted to find out if i can report the expense for the premiums on my Schedule C? I see that I can report them on line 29 of the tax return but if i do that, i'll end up paying social security taxes on the premiums. Yet, I think that the healt insurance premiums for myself and my husband who is working for me should be 100% business expense? Am i correct on that and can i report 100% of the premiums i paid on schedul C?
Answer Health insurance premiums are deducted on line 29 of form 1040, and not on schedule C. Yes, this increases the income subject to self employment taxes.
The deduction is the lesser of the premiums paid or the earned income of the taxpayer.
