Can she deduct her health insurance premiums, since she is self employed, part time?
Answer Hi Kerry, Yes your daughter can deduct up to 100% of health insurance premiums paid on behalf of herself, spouse and dependents. The deduction is an adjustment to income on line 29 of Form 1040. The deduction is limited to the net profit from her Schedule C minus the deductions for one-half of SE tax, Keogh, SEP and SIMPLE contributions. You didn’t mention whether or not she is married but if she is the deduction is not allowed for any month that the self employed person or the spouse is eligible to participate in a subsidized health plan maintained by an employer.
