2007 Instructions For Form 1040 - Draft Worksheet(S) And Tables (Page 6 of 39) in pdf

2007 Instructions For Form 1040 - Draft Worksheet(S) And Tables Page 6

Self-Employed Health Insurance Deduction Worksheet—Line 29

Keep for Your Records

Before you begin:

If, during 2007, you were an eligible trade adjustment assistance (TAA) recipient, alternative

TAA recipient, or Pension Benefit Guaranty Corporation pension recipient, see the Note on

page 27.

Be sure you have read the Exception above to see if you can use this worksheet instead of

Pub. 535 to figure your deduction.

1. Enter the total amount paid in 2007 for health insurance coverage established under your business

for 2007 for you, your spouse, and your dependents. But do not include amounts for any month you

were eligible to participate in an employer-sponsored health plan. Also do not include amounts paid

from retirement plan distributions that were nontaxable because you are a retired public safety officer

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2. Enter your net profit* and any other earned income** from the business under which the insurance

plan is established, minus any deductions on Form 1040, lines 27 and 28 . . . . . . . . . . . . . . . . . . . .

3. Self-employed health insurance deduction. Enter the smaller of line 1 or line 2 here and on

Form 1040, line 29. Do not include this amount in figuring any medical expense deduction on

Schedule A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

* If you used either optional method to figure your net earnings from self-employment, do not enter your net profit. Instead, enter the

amount from Schedule SE, Section B, line 4b.

** Earned income includes net earnings and gains from the sale, transfer, or licensing of property you created. It does not include capital

gain income. If you were a more-than-2% shareholder in the S corporation under which the insurance plan is established, earned income is

your Medicare wages (box 5 of Form W-2) from that corporation.

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2007 Instructions For Form 1040 - Draft Worksheet(S) And Tables Page 6