. Dave and Bea are married and file jointly. Dave is self-employed, and his net

Question

. Dave and Bea are married and file jointly. Dave is self-employed, and his net profit was $100,000 in 2018. They pay $700 per month for health insurance coverage. Bea was a homemaker. In early February, she started working for a company, and both of them became eligible to participate in her employer’s health plan on March 1, 2018. However, they didn’t want to switch insurance providers, so Bea declined her employer’s coverage. How much is their health insurance deduction for self-employed in 2018? Please explain why.

Explanation / Answer

While health insurance premiums are generally deductible for self employed couples, the IRS rules don't allow this deduction for couples if they were eligible for a group health insurance plan of the employer of the spouse. So in the present case, Dave and Bea won't be allowed to claim deduction for their health insurance premium at all.

Hope that helps!

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