Self employment tax and health insurance deduction
Question regarding Self employment tax and health insurance deduction:
My husband is a pastor and receives a housing allowance and a salary. We pay for our insurance entirely (over $7000 last year). How can we deduct this? We do a schedule c, but does a profit have to be shown in order to do this? Thanks and God bless!
Yes. If you report a net loss on Form 1040 Line 12, then you are not eligible to deduct your health insurance costs.
Here is a very informative article that tells you if and how you can deduct your health insurance costs.