Self Employment and Insurance Premium Deductible

[lisaross]

Ok so husband has been self employed since May.

We have health insurance for the family through ACA. I called for the insurance and such so I am the Primary Account Holder. But now reading on the internet it seems He has to be the primary holder to get a deduction for his taxes. Anyone know anything about this? He is on the policy - with his ss# we have the silver plan.

I called but they cannot change it? Any idea if this will be a problem?

thanks

 

[seashoreCM]

At open enrollment time, could you let "your" health insurance policy with your husband on it lapse and sign up for a new policy in your husband's name with you on it?

 

[staceyeileen]

What do you mean by "his" taxes? Don't you file jointly? You are required to file jointly in order to receive the ACA tax credit.

 

[4HOLIDAYS]

I know we are set as a "c" corp and it is illegal to pay the aca premium from the company. You may be set as an "s" corp but I just wanted to mention it as its a $30K fine. The primary I believe has to be employed by the company and then the spouse and children are dependents just as if you were in a large company. So unless you are also employed by whatever company your DH has set up, you all would not be able to pay any insurance from the comp or deduct it.

 

[lisaross]

He is just self employed - no corp or llc

 

[Colleen27]

At open enrollment time, could you let "your" health insurance policy with your husband on it lapse and sign up for a new policy in your husband's name with you on it?

This would be my first thought. I'm glad a friend pointed out this little oddity to us before we signed up or I'd have been in the same boat.

The problem is that a self-employed person operating as a sole proprietor (don't know about other structures) can only take the deduction for health insurance premiums available to the self-employed/small business owners if the policy is in his name. Establishing a policy in my name - which is how we do everything because I'm a SAHM and handle all the household business - would mean he couldn't take that deduction even though we're married, file jointly, and use schedule C on our personal return for his business. At least that's how I read the instructions for the deduction.

 

[lisaross]

Well it's too late as I already paid for the policy for 2015 - it is under both our names so we shall see - another site said it would be ok since it's a joint health care plan -

 

[undertheradar]

You need an accountant or tax expert to assist you with this.