removeps-groups[at]yahoo.com wrote:
- quote -

employer subsidy.

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On Apr 7, 11:24 pm, Alan <sfcnm-...[at]yahoo.com> wrote:

- quote -

What if you were a federal employee, and were laid off, and you took
COBRA plus the 65% federal government subsidy, and became self-
employed?

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On Apr 7, 10:39*pm, spop...[at]speedymail.org (Steve Pope) wrote:
- quote -

COBRA premiuims are a legitimate medical insurance cost to go on line
29 if you have a "plan", to pay medical premiums for your family, if
it otherwise qualifies.

ed

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Stuart A. Bronstein wrote:
- quote -

it a health plan subsidized by an employer. COBRA (an amendment
to ERISA that was passed in 1985) provides the ability for a laid
off worker and family who "have lost their employer sponsored
health plan" to continue coverage for 18 months. Many laid off
workers do not continue coverage because they can not afford to
pay 100% of the premium. The recently passed ARRA, allows for a
65% subsidy of the premiums for nine months for eligible workers
who are laid off. However, I don't believe this can be considered
an employer subsidy as the federal government reimburses
employers and/or insurance companies for the 65%.

Therefore, I must conclude that if the self-employed individual
has a business plan that calls for health insurance for oneself,
spouse and dependent children, the premiums are deductible as an
adjustment to income.

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CMS, VA CPA <cshanes[at]-Delete-This-Nospam-shanescpa.com> wrote:

- quote -

Agree

- quote -

In past discussions on this point, people here felt that Cobra
payments are allowable on Line 29 if the former employer is not paying
any subsidized part of them. Typically, under Cobra, the
former employer pays nothing, and so it is not "employer sponsored".
Cobra is a law that makes private insurance available to some
ex-employees, but it is still private insurance.

(If information exists to contradict this I'd be interested.)

Steve

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"CMS, VA CPA" <cshanes[at]-Delete-This-Nospam-shanescpa.com> wrote:
- quote -

Thanks for the clarification. Personally I never rely on
instructions to determine what the law is.

I haven't researched this so I may be wrong. But if you look at §162
(l) it deals with deduction of health insurance premiums for the self
employed. In subsection 2(B) it says deductibility doesn't apply,

"to any taxpayer for any calendar month for which the taxpayer is
eligible to participate in any subsidized health plan maintained by
any employer of the taxpayer or of the spouse of the taxpayer."

While COBRA might be an employer sponsored plan, it's certainly not
subsidized for the former employee. In addition, during the COBRA
period, the person is no longer an employee of the employer.

Is there a different rule that applies?

Stu

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

"Stuart A. Bronstein" <spamtrap[at]lexregia.com> wrote in message
news:Xns9BE68BB3A626Dspamtraplexregiacom[at]130.133.1.4...
- quote -


No, he cannot. Health insurance for the self-employed is not deducted on
Schedule C. The cost of premiums goes on Line 29 of the 1040 if they meet
the criteria. In this case they don't---- per 1040 line 29 instructions
"do not include amounts for any month you were eligible to participate in an
employer-sponsored health plan "


Cobra is an employer sponsored plan.

Paul is correct, it goes on Schedule A.



--
Charles M. Shanes, CPA
Richmond, VA
QuickBooks ProAdvisor
www.shanescpa.com
cshanes[at]-Delete-This-Nospam-shanescpa.com


--
Charles M. Shanes, CPA
Richmond, VA
QuickBooks ProAdvisor
www.shanescpa.com
cshanes[at]-Delete-This-Nospam-shanescpa.com

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"Paul Thomas, CPA" <paulthomascpapc[at]bellsouth.net> wrote:
- quote -

If his "other job" is as an independent contractor and he files a
Schedule C, he should be able to deduct some of it on there.

Stu

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"Gary" <ghorne2000[at]yahoo.com> wrote
- quote -



Nope. They are a medical expense, rightfully deducted on Schedule A if,
when combined with all other qualified medical expenses, they exceed 7.5% of
your AGI.





--
Paul Thomas, CPA
Watkinsville, Georgia

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I had 2 jobs, one was a consulting gig and the other was a job with
benefits. I quit my full time job with benefits to work for another
companys, but needed to wait 60days for the health insurance benefits
to kick in, can I claim my Cobra payments against as a business
expense ?

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >