The following commentary does not necessarily reflect the views of AgWeb or Farm Journal Media. The opinions expressed below are the author's own.
Paul is now part of the fourth generation in America that is involved in farming and hopes the next generation will be involved also. Through his blog he provides analysis and insight to farmer tax questions.
One of our readers asked the following question:
The Small Business Jobs Act of 2010 added a new provision for 2010 allowing the cost of health insurance premiums for farmers and other self-employed persons to be deducted against self-employment tax. However,the Act did not change how the health insurance premiums are deducted for regular income tax purposes. I have reviewed the instructions for Schedule F and they state that these health insurance premiums are still deducted on page 1 of form 1040 on line 29.
However, I have not seen the new schedule SE which is where I believe the actual deduction on line 29 of form 1040 will flow through as a deduction to offset your SE tax.
Therefore, to answer the question, the actual health insurance premium allowed as deduction will be recorded on line 29 of form 1040, but not on schedule F or C, etc. Any allowed deduction should then flow to the schedule SE to be allowed as a deduction against SE tax. You will only report the deduction once against actual taxable income. You will not be allowed to claim the premiums twice as a deduction and they do not go on Schedule F.
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