Author Topic: Can I write off insurance premiums as a business loss?  (Read 1177 times)

tenant13

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Can I write off insurance premiums as a business loss?
« on: February 15, 2019, 09:29:31 AM »
So I'm kind of FIREd but since I'm a freelancer and a friend begged me to help out for a few weeks I picked up a short term gig. But I will be paid with regular W-2, not 1099. The gig will be too short to get the insurance through the employer so I'll have to get Obamacare (NJ passed the individual mandate law) - which was the intention anyway (or Medicaid if I don't work at all). I used to do quite a lot work as one person LLC but the labor laws have changed so for the last 2 years it's been all W-2s. Here's the question: I never dissolved that LLC; could I claim my health insurance premiums as a loss and write it off my W-2 income (since my LLC income will be 0)? It's one return under the same SSN.

terran

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Re: Can I write off insurance premiums as a business loss?
« Reply #1 on: February 15, 2019, 09:50:50 AM »
Health insurance premiums are deductible if you're self employed, but I don't think you can count W2 income as self employment income. Healthcare spending (I think including insurance) can also be an itemized deduction, but it needs to be over a certain amount (7.5% or 10% I think?) of AGI.

Edit: here's some info that might be helpful: https://www.thebalancesmb.com/self-employment-health-insurance-deduction-3193015. Sounds like this also can't create a loss -- you can only deduct up to the amount of your self employed income.
« Last Edit: February 15, 2019, 09:55:00 AM by terran »