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ID: 2545239 • Letter: R
Question
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[The following information applies to the questions displayed below.]
Smithers is a self-employed individual who earns $37,000 per year in self-employment income. Smithers pays $2,350 in annual health insurance premiums (not through an exchange) for his own medical care. In each of the following situations, determine the amount of the deductible health insurance premium for Smithers before any AGI limitation.
a. Smithers is single and the self-employment income is his only source of income.
b. Smithers is single, but besides being self-employed, Smithers is also employed part-time by SF Power Corporation. This year Smithers elected not to participate in SF's health plan.
c. Smithers is self-employed and he is also married. Smithers's spouse, Samantha, is employed full-time by SF Power Corporation and is covered by SF’s health plan. Smithers is not eligible to participate in SF's health plan.
d. Smithers is self-employed and he is also married. Smithers's spouse, Samantha, is employed full-time by SF Power Corporation and is covered by SF’s health plan. Smithers elected not to participate in SF’s health plan.
Explanation / Answer
smithers can deduct $2350 either as deduction for AGI or $2350 claim as an itemized medical deductions Smither is a self employed but he is not eligible to deduct the health insurance premium as AGI deduction. Because he is part time employee in SF Corporation. so Smither can claim only $2350 as an itemized deduction smithers can deduct $2350 either as deduction for AGI or $2350 claim as an itemized medical deductions Smither is a self employed but he is not eligible to deduct the health insurance premium as AGI deduction. Because he is part time employee in SF Corporation. so Smither can claim only $2350 as an itemized deduction
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