Earned income and self employed health plan deduction

[ombskid]

Earned income is generally net schedule C less 1/2 of se tax. Does the deduction for self employed health insurance have any effect?

Sch c less 1/2 se tax is $8900. He wants to deduct the full $8900 (401k/profit sharing plan). Health insurance deduction is $8500. He has other income so he has use for both deductions.

Can he make and deduct the full $8900 to the plan, plus take the health ins deduction?

[masteff]

No, in response to also taking the SE health insurance deduction. A review of Form 1040 instructions for line 29 (the SE Heath Ins deduction) shows it's limited to net profit less 1/2 SE tax less SE retirement plans. (See worksheet on page 27 of http://www.irs.gov/pub/irs-pdf/i1040.pdf )

Keep in mind that amounts that can't be deducted on line 29 may qualify as an itemized deduction on Schedule A (as medical expenses are allowed only in excess of 7.5% of income, it would depend on how much other income the client has for whether it would amount to much).

[ombskid]

No, in response to also taking the SE health insurance deduction. A review of Form 1040 instructions for line 29 (the SE Heath Ins deduction) shows it's limited to net profit less 1/2 SE tax less SE retirement plans. (See worksheet on page 27 of http://www.irs.gov/pub/irs-pdf/i1040.pdf )

Keep in mind that amounts that can't be deducted on line 29 may qualify as an itemized deduction on Schedule A (as medical expenses are allowed only in excess of 7.5% of income, it would depend on how much other income the client has for whether it would amount to much).

Thanks. It's clear as could be.