Tax Law (Questions About Taxes)/Health Ins for Partners

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Question
If the partners want to pay their health insurance through the partnership would it just be considered guaranteed payments and then take the expense on their personal tax returns?

Answer
Dear Kelly,

Payment for health insurance premium is not considered guaranteed payment.
It is reported as other deductions on Sch K-1 under code M.

These amounts can be deducted on line 29 of form 1040 even if you do not itemize your deductions.

Each partner can take deductions for himself, his spouse and dependent children.

Hope this helps.

I.J.Zemelman, EA

Tax Law (Questions About Taxes)

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IJ Zemelman, EA MBA

Expertise

I am an IRS-authorized EA and principal of a Tax Preparation firm focusing on U.S. Expatriates. We specialize in all tax issues faced by American citizens living abroad - such as foreign earned income, tax treaties, foreign spouse, etc. Visit our website - www.TaxesForExpats.com - for more information.

Experience

18 years professional tax experience, 12 with expatriate taxes.

Publications
Expatriate tax information on www.TaxesForExpats.com

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MBA from Zicklin School Of Business, IRS Enrolled Agent

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