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Self-Employed Health Insurance Deduction Worksheet—Line 29 Keep for Your Records Form 1040—Lines 23 Through 29 For more details, use TeleTax topic 458 Line 29 Line 26 (see page 94) or see Pub. 529. Self-Employed Health Moving Expenses Insurance Deduction If you moved in connection with your job Line 24 You may be able to deduct the amount you or business or started a new job, you may paid for health insurance for yourself, your be able to take this deduction. But your new Certain Business Expenses spouse, and your dependents if any of the workplace must be at least 50 miles farther of Reservists, Performing following applies. from your old home than your old home Artists, and Fee-Basis was from your old workplace. If you had no • You were self-employed and had a net Government Officials former workplace, your new workplace profit for the year. must be at least 50 miles from your old Include the following deductions on • You used one of the optional methods home. Use TeleTax topic 455 (see page 94) line 24. to figure your net earnings from self-em- or see Form 3903. ployment on Schedule SE. • Certain business expenses of National • You received wages in 2009 from an Guard and reserve members who traveled S corporation in which you were a more than 100 miles from home to perform more-than-2% shareholder. Health insur- services as a National Guard or reserve Line 27 ance premiums paid or reimbursed by the S member. corporation may be shown in box 14 of One-Half of • Performing-arts-related expenses as a Form W-2. qualified performing artist. Self-Employment Tax • Business expenses of fee-basis state The insurance plan must be established If you were self-employed and owe or local government officials. under your business. If you are a self-employment tax, fill in Schedule SE to more-than-2% shareholder in an S corpora- figure the amount of your deduction. For more details, see Form 2106 or tion, the plan must be established by the S 2106-EZ. corporation. A plan is established by the S corporation if (a) the S corporation makes the premium payments for the policy in Line 28 2009 or (b) you make the premium pay- Line 25 ments and furnish proof of payment to the S Self-Employed SEP, SIMPLE, corporation and then the S corporation re- Health Savings Account and Qualified Plans imburses you for the premium payments in (HSA) Deduction 2009. You can deduct the premiums only if If you were self-employed or a partner, you You may be able to take this deduction if the S corporation reports the premiums may be able to take this deduction. See contributions (other than employer contri- paid or reimbursed as wages in box 1 of Pub. 560 or, if you were a minister, Pub. butions, rollovers, and qualified HSA fund- your Form W-2 in 2009 and you also report 517. the premium payments or reimbursements ing distributions from an IRA) were made as wages on Form 1040, line 7. to your HSA for 2009. See Form 8889. Before you begin:  If, during 2009, you were an eligible trade adjustment assistance (TAA) recipient, alternative TAA (ATAA) recipient, reemployment trade adjustment assistance (RTAA) recipient, or Pension Benefit Guaranty Corporation pension recipient, see the Note on page 31.  Be sure you have read the Exception on page 31 to see if you can use this worksheet instead of Pub. 535 to figure your deduction. 1. Enter the total amount paid in 2009 for health insurance coverage established under your business (or the S corporation in which you were a more-than-2% shareholder) for 2009 for you, your spouse, and your dependents. But do not include amounts for any month you were eligible to participate in an employer-sponsored health plan or amounts paid from retirement plan distributions that were nontaxable because you are a retired public safety officer . . . . . . . . . . . . . . . . . . . . . . . 1. 2. Enter your net profit* and any other earned income** from the business under which the insurance plan is established, minus any deductions on Form 1040, lines 27 and 28 . . . . . . . . . . . . . . . . . . . . 2. 3. Self-employed health insurance deduction. Enter the smaller of line 1 or line 2 here and on Form 1040, line 29. Do not include this amount in figuring any medical expense deduction on Schedule A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. *If you used either optional method to figure your net earnings from self-employment, do not enter your net profit. Instead, enter the amount from Schedule SE, Section B, line 4b. **Earned income includes net earnings and gains from the sale, transfer, or licensing of property you created. However, it does not include capital gain income. If you were a more-than-2% shareholder in the S corporation under which the insurance plan is established, earned income is your Medicare wages (box 5 of Form W-2) from that corporation. Need more information or forms? See page 96. - 30 -