Terrell, a self employed architect, paid for his health insurance out of his own

Question

Terrell, a self employed architect, paid for his health insurance out of his own pocket. He was not eligible to be covered under any other insurance plan until November 1, when he became eligible under his spouses employer sponsored plan. His total premiums paid for the year were $4,600. How much can Terrell deduct as an adjustment to income on his tax return? Terrell, a self employed architect, paid for his health insurance out of his own pocket. He was not eligible to be covered under any other insurance plan until November 1, when he became eligible under his spouses employer sponsored plan. His total premiums paid for the year were $4,600. How much can Terrell deduct as an adjustment to income on his tax return?

Explanation / Answer

Solution :- 1 November to 31 December = Two months.

Deduction available to Terrell in the given question = 4600 - (4600 * 2 / 12)

= 4600 - 767 (approx)

= $ 3833.

Conclusion :- Deduction available to Terrell = $ 3833.

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