Self employment tax and health insurance deduction

by Rosie

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.

Self-Employment Health Insurance Deduction

Hope this helps,

Church Accounting Package

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