Federal Tax

Self employed health insurance

  • 1.  Self employed health insurance

    Platinum Most Valuable Member
    Posted 08-26-2015 02:12 PM
    I have a client that is a 100% owner of a S Corporation.
    She pays for health insurance for herself and her daughter through her late husband's union as a "COBRA" payment.
    My CCH "Master Tax Guide" says that "you can deduct from gross income 100% of amounts paid ..."  The TaxBook says that "For more than 2% shareholders, a policy can be either in the name of the S corporation or the shareholder." 
    Do COBRA payments count as an adjustment to gross income (line 29 of form 1040)?

    Thank you for your feed back.

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    David Rothfeld
    DAVID J. ROTHFELD, CPA
    Hicksville NY
    516-433-2129
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