Question

Smithers is a self-employed individual who earns $30,000 per year in self-employment income. Smithers pays $2,200 in annual health insurance premiums (not through an exchange) for his own medical care.

In each of the following situations, determine the amount of the deductible health insurance premium for Smithers before any AGI limitation.
a. Smithers is single and the self-employment income is his only source of income.
b. Smithers is single, but besides being self-employed, Smithers is also employed part-time by SF Power Corporation. This year Smithers elected not to participate in SF's health plan.
c. Smithers is self-employed and he is also married. Smithers's spouse, Samantha, is employed full-time by SF Power Corporation and is covered by SF’s health plan. Smithers is not eligible to participate in SF's health plan.
d. Smithers is self-employed and he is also married. Smithers' spouse, Samantha, is employed full-time by SF Power Corporation and is covered by SF’s health plan. Smithers elected not to participate in SF’s health plan.

Answer 1

Section a)

The measure of $2,200 can be asserted as a finding from the estimation of balanced gross pay (AGI) or can likewise be claimed as separated clinical cost by Smithers.

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Part b)

In the given circumstance, Smithers can claim $2,200 as an ordered reasoning as he was qualified for take part in the SF's health plan. According to the principles of IRS, genuine cooperation in the business' health plan isn't required to confine Smithers from asserting $2,200 as clinical cost conclusion from the balanced gross pay (AGI). The limitation is relevant if the worker is qualified to take an interest in plan, despite the fact that he/she chooses something else.

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Part c)

In the given circumstance, the measure of $2,200 can be claimed as a reasoning from the estimation of balanced gross pay (AGI) or can likewise be asserted as ordered clinical cost by Smithers. It is on the grounds that Smithers isn't qualified to take an interest in SF's health plan.

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Part d)

In the given circumstance, Smithers can claim $2,200 as an ordered reasoning as he was qualified for partake in the SF's health plan. According to the standards of IRS, real support in the health plan gave by life partner's manager isn't required to confine Smithers from claiming $2,200 as clinical cost derivation from the balanced gross pay (AGI). The limitation is appropriate if Smithers is qualified to take an interest in the health plan of mate's boss, despite the fact that he chooses something else.