Self employment tax and health insurance deduction

by Rosie
(Texas)

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!

Answer

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

www.freechurchaccounting.com


Click here to post comments

Join in and write your own page! It's easy to do. How? Simply click here to return to Clergy Tax Q&A.

If you want to DIY your payroll, I highly recommend you look at using Gusto! It is very user friendly and their support is awesome! Plus they know how to set up and maintain payrolls for churches and nonprofit organizations.

Note: I am a "partner" of Gusto, but as I have told you before ... I never recommend anything that we or our clients have not tried and love =)



Share this page:
Enjoy this page? Please pay it forward. Here's how...

Would you prefer to share this page with others by linking to it?

  1. Click on the HTML link code below.
  2. Copy and paste it, adding a note of your own, into your blog, a Web page, forums, a blog comment, your Facebook account, or anywhere that someone would find this page valuable.