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    1 Reply Latest reply on Nov 12, 2010 9:27 AM by bm911tax

    Is COBRA Health Premiums Deductible for Self-Employed?

    PinBoy27 Newbie
      I read an article about health premiums being considered as deductible for qualified self-employed individuals by deducting them in their 1040 filing. This rule is not the same though at the 7.5% AGU hurdle for individuals with health premiums and out-of-pocket expenses.

      Does this rule covers both private health insurance coverage premiums (i.e. Aetna, UHC) AND those covered under COBRA? I heard from a blog that COBRA is an exception to this rule..

      Taxed and Confused
        • Re: Is COBRA Health Premiums Deductible for Self-Employed?
          bm911tax Adventurer
          COBRA is not a plan, its a subsidy that allows you to continue and pay for the health insurance under the group rates. Presuming that you only referring to the portion of COBRA that YOU are responsible for, and you have earned income from self-employment, you can deduct the health insurance premium through the COBRA arrangements on 1st page of 1040. There are certain limitation to the deductibility, so you may want to get a copy of Publications 17 and 338 from the IRS.