Premiums for Medicare health insurance can add up to a substantial sum. That’s especially true if:
- you have a high income, and
- you’re married and both you and your spouse are paying premiums.
- The business deduction produces the maximum tax benefit.
- The self-employed health insurance deduction on line 29 of Schedule 1 of your Form 1040 produces the second-best benefit.
- The itemized deduction is either useless or produces the third-best benefit.
- You are the sole owner and only employee of your C corporation.
- You operate as a sole proprietorship or single-member LLC, and your spouse is your only employee.
- You operate as a C corporation and have 20 or fewer employees to whom you offer group health insurance.
- You operate as a C corporation, either you or your spouse is an employee, and you offer a qualified small employer health reimbursement arrangement (QSEHRA).
- Holiday parties, annual picnics, and summer outings
- Maintaining a swimming pool, baseball diamond, bowling alley, or golf course
- a highly compensated employee (an employee who is paid more than $125,000 in 2019);
- anyone, including you, who owns at least a 10 percent interest in your business (this is called a “10 percent owner”); or
- any member of the family of a 10 percent owner, i.e., brothers and sisters (including half brothers and half sisters); spouses; ancestors (parents, grandparents, etc.); and lineal descendants (children, grandchildren, etc., including adoptees).