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jdefl4444
February 18, 2020
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Can I claim the self employed health insurance premium deduction if I was still within the 18 month window for COBRA eligibility from a former employer?

  • February 18, 2020
  • 1 reply
  • 0 views
I left a job in June 2018 and paid for COBRA health insurance from that employer through the end of 2018.  Beginning in 2019, I cancelled the COBRA coverage and began health insurance coverage through the federal healthcare exchange because it was $500/mo cheaper.  COBRA coverage would technically have been available to me for 18 months total, through the end of 2019.  I have been assuming that I cannot deduct the insurance premiums that I paid for a different plan in 2019 because I 'opted out' of COBRA.  Is this is correct?  Thank you.
Best answer by katherinejoyceO

Welcome to the Community, @jdefl4444. Thanks for sharing detailed information on your concern. 

 

Yes, that's true. Opted out of health insurance offered to you by an employer, your spouse’s employer or your parents would make you ineligible in claiming the health insurance deduction for premiums you've paid. 

 

To know more about the qualifications of claiming the self-employed health insurance in QuickBooks, refer to this help article: Health Insurance Premiums. 

 

Also, see these links to learn more about how the Health Insurance Premium being reported in QBSE:

 

Visit again if you have additional concerns. We're always delighted to assist.

1 reply

katherinejoyceO
katherinejoyceOAnswer
February 18, 2020

Welcome to the Community, @jdefl4444. Thanks for sharing detailed information on your concern. 

 

Yes, that's true. Opted out of health insurance offered to you by an employer, your spouse’s employer or your parents would make you ineligible in claiming the health insurance deduction for premiums you've paid. 

 

To know more about the qualifications of claiming the self-employed health insurance in QuickBooks, refer to this help article: Health Insurance Premiums. 

 

Also, see these links to learn more about how the Health Insurance Premium being reported in QBSE:

 

Visit again if you have additional concerns. We're always delighted to assist.

    G
    goldmund22
    June 13, 2023

    Hello,

     

     I wanted to ask about this same issue. It was my understanding that since I am self employed that I would be able to deduct my health insurance premiums from my marketplace/healthcare.gov plan and should categorize them as "business" expenses on QB Self Employed. I was laid off from an employer in February 2022, and have since been working as a self employed consultant since then. Technically I would have been able to sign up for Cobra from my former employer; however, in comparison to the marketplace health plans the cost of the COBRA plan (which would not be subsidized by my former employer) was MUCH higher, just as the OP mentioned in the post. 


    In your reply you said that a self employed individual cannot deduct marketplace health insurance premiums because the OP technically qualified for COBRA. Are you sure this is correct? If I am laid off, and do not opt into an expensive non-subsidized COBRA plan, surely I should still qualify for the deduction if I choose a healthcare.gov plan?

     

    Thanks for any clarification.

     

    JaeAnnC
    JaeAnnC
    June 13, 2023

    Thanks for being here, @goldmund22. Allow me to step in and share additional information regarding the health insurance premium deduction in QuickBooks Self-Employed (QBSE).

     

    Yes. If you prefer other health plans, you're still eligible to claim a deduction for your health insurance premiums. 

     

    The HealthCare.gov health insurance marketplace was established by the Affordable Care Act (ACA). It's a good starting point for anyone looking for health insurance policies and contains resources specifically for self-employed workers. 

     

    However, your spouse’s insurance policy may impact your ability to enroll for a plan on the marketplace. You most likely won't be eligible for premium tax credits and other discounts on a marketplace plan if their insurance covers spouses and dependents.

     

    For additional details, please see this blog: How to get health insurance when you’re self-employed.

     

    Furthermore, we assist you in determining whether you can write off your healthcare expenses as a deduction. I suggest reading this article to learn more: Find out if your healthcare is deductible in QuickBooks Self-Employed.

     

    Please don't hesitate to post updates on this thread whenever you have any follow-up questions about the health insurance deductions in QBSE. I'm always available 24/7 to answer them. Be safe and have a nice day ahead!

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