Deduct the $7,500 on 1040 and the remainder on Scheudle A.
It is NOT advantages to put it all on A, though it might not
be DIS-advantageous.

ed

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"toller" <toller[at]yahoo.com> wrote:

- quote -

Take the full allowable amount on Form 1040 and put the rest
into Schedule A. Because the allowable self-employed
insurance reduces adjusted gross income, you get additional
medical deduction on Schedule A. Using your figures, that's
an additional $562 with which to save taxes.

--
Tom Healy, CPA
Boulder, CO
Web: http://www.tomhealycpa.com

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I am self employed and made $7,500 (from work; I also had
investment income) and paid $10,000 for medical insurance.

I know I can deduct $7,500 of the medical insurance against
the self employment income; but can I then throw the
non-ductible $2,500 remainder into the deduction for medical
costs that exceeds 7.5% of my total income?

If not, could I not take the $7,500 self employment and
throw the whole $10,000 into the over 7.5% deduction; as it
might come out better that way. (I am right on the cusp for
qualifying for the 7.5% without the insurance premium, so
effectively the whole $10,000 would be deductible this way.)

It seems fair, but I understand the tax code isn't about fair.

---------------------------- Moderator:
Whenever taxation and fairness converge, it means Congress
was asleep at the switch.
----------------------------
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