Question

For calendar year 2019, Jean was a self-employed consultant with no employ-ees. She had $80,000 of net profit from consulting and paid $7,000 in medical insurance premiums on her policy covering 2019. How much of these premiums may Jean deduct as a deduction for AGI? How much may she deduct as an itemized deduction (subject to the AGI floor)?

Answer 1

1. $7,000
2. $0

Step-by-step explanation:

Self-employed people can deduct 100% of their medical insurance premiums (including her whole family), this even includes dental coverage. So Jean is able to deduct the full $7,000 she spent in medical insurance premiums during 2019.

If Jean wants to itemize her deductions then she will not be allowed to deduct any of the $7,000. So her deductions would be $0.