I have a single-member LLC, no employees. Can I consider my healthcare premium a pre-tax expense?
I am working as a contractor and have a SMLLC. I purchase my health insurance through COBRA so it's a very confusing situation. I'm just trying to figure if I can use my health insurance premium as a business expense or if it is a post-tax expense.
Comments
You are participating in a subsidized insurance program through your former employer. The premiums are not deductible as an adjustment to income. They may be included as medical expenses on Schedule A.
If you switch to private insurance you could deduct the premiums as long as your spouse is not eligible to purchase your health insurance through her employer.
Cobra is not going to cut it. Cobra is through your former employer and flunks the requirement that the insurance be through the business.
The *ONLY* place you can deduct the cobra is on schedule A.
http://www.bankrate.com/brm/itax/tax_adviser/20041...
if you are filing sole proprietor the health care is a credit against your gross income on the front of your 1040, not a business expense