Several years ago I remember that I could only deduct my health insurance on Schedule C, then when Obama was elected they changed it so that is a deduction on the front of the 1040, which was supposted to be a big benefit. But I don't understand why. It seems the same. For example:
Old days
If Schedule C shows 25,000 profit and I deduct 5,000 Health Insurance as a business expense, this = $20,000 taxable income that is moved to the front of the 1040.
Now
If schedule C shows 25,000 profit (no insurance deducted on schedule C) and it is moved to the front of the 1040 and then afterwards the $5,000 is deducted. It still = 20,000 that is being taxed.
They seem the same to me. What am I missing?
I'm trying to figure out how much money I save on taxes because of my HMO Health insurance (just curious). The real numbers are $25,000 business profit and $9,000 annual insurance.