Home Improvement Contractor - Licensed Contractors

If I am getting paid as a independant contractor can I claim the medical insurance I pay?

I also pay for my own RX's too I'm in graduate school and work for a company as an independant contractor - I bought my health insurance through my graduate school.

Public Comments

1. I don't see why not. I'm not sure about your Rx's.
2. As an independent contractor you can deduct your health insurance premiums on the front page of the 1040, as self-employed health insurance. It does not reduce your profit though, i.e., it is not a deduction on Sched C. Dr and Rx can only be deducted on Sched A, not as self-employed health insurance. As always, consult with a tax professional for specific answers. CPA Greg
3. Medical insurance would be claim on the 1040 under itemized deductions. Now, if you are married and can hire your spouse, you can offer your spouse medical insurance as a benefit (this is on schedule C) and then your spouse would claim you as a coinsure on the health insurance. Now it is deductible. Cool huh?
4. There is a self employed medical insurance deduction - line 29 on the 1040 form. This is a better deal than claiming it on your Schedule A itemized deductions - because you have to deduct 7.5% of your AGI from the total amount of medical expenses on your AGI. The RX's can only be claimed on the Schedule A.
5. Did you establish the medical insurance as part of your business? If you get the insurance through another employer, a spouse's employer or a COBRA arrangement, it won't qualify for the front page deduction.