Form 1040 Instructions - 2015 Page 33
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105 2015 Form 1040—Lines 29 Through 32
more-than-2% shareholder. Health in-
Medicare premiums you voluntarily
Line 32
surance premiums paid or reimbursed by
pay to obtain insurance in your name
the S corporation are shown as wages on
that is similar to qualifying private
IRA Deduction
Form W-2.
health insurance can be used to figure
the deduction. Amounts paid for health
If you made any nondeductible
The insurance plan must be establish-
insurance coverage from retirement plan
contributions to a traditional
ed under your business. Your personal
TIP
distributions that were nontaxable be-
individual retirement arrange-
services must have been a material in-
cause you are a retired public safety of-
ment (IRA) for 2015, you must report
come-producing factor in the business.
ficer can't be used to figure the deduc-
them on Form 8606.
If you are filing Schedule C, C-EZ, or F,
tion.
the policy can be either in your name or
If you made contributions to a tradition-
in the name of the business.
For more details, see Pub. 535.
al IRA for 2015, you may be able to take
If you are a partner, the policy can be
an IRA deduction. But you, or your
If you qualify to take the deduction,
either in your name or in the name of the
spouse if filing a joint return, must have
use the Self-Employed Health Insurance
partnership. You can either pay the pre-
had earned income to do so. For IRA
Deduction Worksheet to figure the
miums yourself or your partnership can
purposes, earned income includes alimo-
amount you can deduct.
pay them and report them as guaranteed
ny and separate maintenance payments
Exceptions. Use Pub. 535 instead of
payments. If the policy is in your name
reported on line 11. If you were a mem-
the Self-Employed Health Insurance De-
and you pay the premiums yourself, the
ber of the U.S. Armed Forces, earned in-
duction Worksheet in these instructions
partnership must reimburse you and re-
come includes any nontaxable combat
to figure your deduction if any of the
port the premiums as guaranteed pay-
pay you received. If you were self-em-
following applies.
ments.
ployed, earned income is generally your
You had more than one source of
net earnings from self-employment if
If you are a more-than-2% sharehold-
income subject to self-employment tax.
your personal services were a material
er in an S corporation, the policy can be
You file Form 2555 or 2555-EZ.
income-producing factor. For more de-
either in your name or in the name of the
You are using amounts paid for
tails, see Pub. 590-A. A statement
S corporation. You can either pay the
qualified long-term care insurance to
should be sent to you by May 31, 2016,
premiums yourself or the S corporation
figure the deduction.
that shows all contributions to your tra-
can pay them and report them as wages.
Use Pub. 974 instead of the work-
ditional IRA for 2015.
If the policy is in your name and you
sheet in these instructions if the insur-
pay the premiums yourself, the S corpo-
Use the IRA Deduction Worksheet to
ance plan established, or considered to
ration must reimburse you. You can de-
figure the amount, if any, of your IRA
be established, under your business was
duct the premiums only if the S corpora-
deduction. But read the following
obtained through the Marketplace and
tion reports the premiums paid or reim-
11-item list before you fill in the work-
you are claiming the premium tax credit.
bursed as wages in box 1 of your Form
sheet.
W-2 in 2015 and you also report the pre-
Line 30
1. If you were age 70
or older at
1
mium payments or reimbursements as
2
the end of 2015, you can't deduct any
wages on Form 1040, line 7.
Penalty on Early Withdrawal
contributions made to your traditional
But if you were also eligible to par-
of Savings
IRA for 2015 or treat them as nondeduc-
ticipate in any subsidized health plan
tible contributions.
maintained by your or your spouse's em-
The Form 1099-INT or Form 1099-OID
2. You can't deduct contributions to
ployer for any month or part of a month
you received will show the amount of
a Roth IRA. But you may be able to take
in 2015, amounts paid for health insur-
any penalty you were charged.
the retirement savings contributions
ance coverage for that month can't be
credit (saver's credit). See the instruc-
Lines 31a and 31b
used to figure the deduction. Also, if
tions for line 51.
you were eligible for any month or part
Alimony Paid
3. If you are filing a joint return and
of a month to participate in any subsi-
you or your spouse made contributions
dized health plan maintained by the em-
If you made payments to or for your
to both a traditional IRA and a Roth IRA
ployer of either your dependent or your
spouse or former spouse under a divorce
for 2015, do not use the IRA Deduction
child who was under age 27 at the end
or separation instrument, you may be
Worksheet in these instructions. Instead,
of 2015, do not use amounts paid for
able to take this deduction. Use
Tax
see Pub. 590-A to figure the amount, if
coverage for that month to figure the de-
Topic 452
or see Pub. 504.
any, of your IRA deduction.
duction.
4. You can't deduct elective defer-
Example. If you were eligible to par-
rals to a 401(k) plan, 403(b) plan, sec-
ticipate in a subsidized health plan main-
tion 457 plan, SIMPLE plan, or the fed-
tained by your spouse's employer from
eral Thrift Savings Plan. These amounts
September 30 through December 31,
aren't included as income in box 1 of
you can't use amounts paid for health in-
your Form W-2. But you may be able to
surance coverage for September through
December to figure your deduction.
-33-
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