- quote -

If the employer's plan is NOT subsidized, then you CAN take
the self-employed health insurance deduction.

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Thank you all for your reply. I am paying 100% (COBRA) but
still I think I cannot take the adjustment as there is
already a limited health coverage insurence from my current
employer and this plan at is also not subsidized and here
also I need to pay 100%.

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

- quote -

keep in mind that if the insurance is not subsidized, a
self-employed person can take it as an above-the-line
adjustment. COBRA is not subsidized, you are paying 100% of
the premium. But as Chris B. pointed out, if the plan you
are eligible for at work is subsidized (whether or not you
participate), you cannot take the adjustment.

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- quote -

In most cases COBRA is not subsidized. It's up to each
employer, but typically the former employee pays the full
cost (or up to 2% more). So the OP needs to find out whether
he/she is paying the full premium, or the former employer is
paying part of it.

I think the real question here is whether, for an
independent consultant, COBRA coverage from a former
employer can be considered a plan that is "established under
your trade or business."

Bob Sandler

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dipora[at]yahoo.com wrote:

- quote -

The self-employed health insurance deduction is not
available in any month that either you or your spouse are
eligible to participate in any subsidized health insurance
program. It doesn't matter if you elect not to
participate--if you are eligible, you lose the deduction.
It also doesn't matter if is a lousy plan or a good plan--if
you are eligible for the insurance, you lose the deduction.
Code section 162(l)(2)(B).

--Chris Ballard

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I am working as a consultant in a company where they provide
minimal health coverage, so I am continuing with my old
company's health insurance for 18 months (COBRA). This year
I will be paying $10200 ($850 per month). This is with after
tax dollars. Can I claim this as pre-tax under self employed
health insurance? I am not totally self-employed as I am
consulting and working as temporary hourly employee and
getting a W2. So, my question is can this health insurance
(COBRA) payment be pre tax?

Your help on this is highly appreciated.

Thanks,
dipora

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >