John wrote:

- quote -

Nope.

- quote -

NOooooo.... comment!

Cheer$,
Harlan Lunsford, EA n LA

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"John" <John[at]john.com> wrote:

- quote -

Good question - generally speaking a misunderstanding is
something that happens in good faith without knowledge to
the contrary. For example, if you read the IRS publication
that addresses Self Employed Health Insurance and using your
best efforts made a good faith determination that the health
insurance as you pay it is allowable as an adjustment to
income, then if the IRS catches you can argue a good faith
misunderstanding. However, if you know you aren't entitled
to take this as an adjustment to income but do so anyway
then you don't have a misunderstanding, you have committed
an act of fraud - remember, fraud includes intent and if you
knew one thing but did another with the intent of cheating
the IRS then it is fraud.

I'd have to check, but I do believe that under the
circumstances you describe you CANNOT claim the portion you
pay as a self employed health insurance adjustment to
income.

Gene E. Utterback, EA

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I have a one man home improvement company that did okay last
year.

My medical insurance is through my wife's employer; we pay
half the cost. Any chance I can deduct the medical insurance
we pay against my self-employment income?

Not that I would do such a thing, but if it is not proper
and I got caught doing it, would it just be nominal penalty
because of the "misunderstanding"? Presumably they wouldn't
have any way to catch it without an audit; right?

Thanks.

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