Health Insurance Premiums, Help Please
 

I have recieved conflicting answers on this issue. I am a teacher and have insurance through my employer. I could provide insurance for my wife but at a very high cost. My wife owns a home day care and we purchased Blue Cross Blue Shield insurance for her and the kids which costs half as much as them going through my employer. My question is can we deduct her premiums under the business. I know you cant if you can be a part of a subsidized program through your spouse. However is our option subsidized since it is so expensive. Thanks for the help.

I am sure Tom will answer but here is one response he has given in regards to medical insurance.

https://www.daycare.com/forum/showthread.php?t=41233

medical insurance
 

Since your wife is eligible to be covered through your plan at work, you can't deduct her medical premiums on Form 1040, line 29. Even though it's expensive, she is eligible, therefore she can't deduct the premiums. You can deduct her insurance premiums and all other out-of-pocket medical expenses as an itemized expense on Schedule A.

The only way to be able to deduct medical expenses as a business expense for your wife is if she set up a Section 105 medical reimbursement plan. See my article for details:http://www.tomcopelandblog.com/2011/...eductible.html

Join me on February 9th for my webinar "2011 Family Child Care Tax Update: How to Reduce Your Taxes". For details:http://events.r20.constantcontact.co...&llr=yatrx4cab

I'm not sure which company has premium health insurance. I guess all companies have that kind of insurance term. Just do some researches about it.