Instructions For Form 1040 - U.s. Individual Income Tax Return - 2016 Page 33

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2017 Form 1040—Lines 29 Through 32
Self-Employed Health Insurance Deduction Worksheet—Line 29
Keep for Your Records
Before you begin:
If, during 2017, you were an eligible trade adjustment assistance (TAA) recipient, alternative TAA
(ATAA) recipient, reemployment TAA (RTAA) recipient, or Pension Benefit Guaranty Corporation
pension payee, see the Instructions for Form 8885 to figure the amount to enter on line 1 of this
worksheet.
Be sure you have read the Exceptions in the instructions for this line to see if you can use this
worksheet instead of Pub. 535 to figure your deduction.
1. Enter the total amount paid in 2017 for health insurance coverage established under your business
(or the S corporation in which you were a more-than-2% shareholder) for 2017 for you, your
spouse, and your dependents. Your insurance also can cover your child who was under age 27 at
the end of 2017, even if the child wasn't your dependent. But don’t include amounts for any month
you were eligible to participate in an employer-sponsored health plan or amounts paid from
retirement plan distributions that were nontaxable because you are a retired public safety
officer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.
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. Don’t include
Conservation Reserve Program payments exempt from self-employment tax . . . . . . . . . . . . . . . . . . .
2.
3. Self-employed health insurance deduction. Enter the smaller of line 1 or line 2 here and on
Form 1040, line 29. Don’t include this amount in figuring any medical expense deduction on
Schedule A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.
*If you used either optional method to figure your net earnings from self-employment, don’t 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. However, it doesn't 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.
A qualified small employer
Lines 31a and 31b
Exceptions. Use Pub. 535 instead of
!
health reimbursement arrange-
the Self-Employed Health Insurance De-
ment (QSEHRA) is considered
Alimony Paid
duction Worksheet in these instructions
CAUTION
to be a subsidized health plan main-
to figure your deduction if any of the
If you made payments to or for your
tained by an employer.
following applies.
spouse or former spouse under a divorce
You had more than one source of
Example. If you were eligible to par-
or separation instrument, you may be
income subject to self-employment tax.
ticipate in a subsidized health plan main-
able to take this deduction. Use
Tax
You file Form 2555 or 2555-EZ.
tained by your spouse's employer from
Topic 452
or see Pub. 504.
You are using amounts paid for
September 30 through December 31,
qualified long-term care insurance to
Line 32
you can't use amounts paid for health in-
figure the deduction.
surance coverage for September through
Use Pub. 974 instead of the work-
IRA Deduction
December to figure your deduction.
sheet in these instructions if the insur-
Medicare premiums you voluntarily
ance plan was considered to be estab-
If you made any nondeductible
pay to obtain insurance in your name
lished under your business and was ob-
contributions to a traditional
TIP
that is similar to qualifying private
tained through the Marketplace, and ad-
individual retirement arrange-
health insurance can be used to figure
vance payments of the premium tax
ment (IRA) for 2017, you must report
the deduction. Amounts paid for health
credit were made or you are claiming
them on Form 8606.
insurance coverage from retirement plan
the premium tax credit.
If you made contributions to a tradition-
distributions that were nontaxable be-
Line 30
cause you are a retired public safety of-
al IRA for 2017, you may be able to take
an IRA deduction. But you, or your
ficer can't be used to figure the deduc-
Penalty on Early Withdrawal
tion.
spouse if filing a joint return, must have
had earned income to do so. For IRA
of Savings
For more details, see Pub. 535.
purposes, earned income includes alimo-
If you qualify to take the deduction,
ny and separate maintenance payments
The Form 1099-INT or Form 1099-OID
use the Self-Employed Health Insurance
reported on line 11. If you were a mem-
you received will show the amount of
Deduction Worksheet to figure the
ber of the U.S. Armed Forces, earned in-
any penalty you were charged.
amount you can deduct.
-33-
Need more information or forms? Visit IRS.gov.

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