If you are both self-employed, how much of your peronal health insurance can you write off on your taxes?

Question

If you are both self-employed, how much of your peronal health insurance can you write off on your taxes? I am paying 180 per month and my wife is paying 380 per month; how much of that are you allowed to write off on your taxes; with the deductions we have now we are below the poverty line but my accountant is saying I owe like 7k in taxes; i just dont see it; any help would be appreciated; thanks in advance!!

Answer 1

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Answer 2

If all your income is self-employment income and you owe about $7,000 then your taxable income was about $26,717.  

Of the $7,000 in taxes, $3,775 would be self-employment taxes - These taxes allow you to draw social security when you retire.

The other $3,225 would be your income taxes.

The 2008 poverty level for two people is $14,000 - it sounds like you made alot more than that!

Self-employed health insurance is deducted on line 29.  In order to be able to deduct the insurance, you have to have made a profit (which it sounds like you did) and the health insurance has to be through the business.  There is a worksheet that you fill out in order to figure out how much you can deduct.