Carlos is a self-employed, single taxpayer. In 2017, he earned a net profit of $
ID: 2550426 • Letter: C
Question
Carlos is a self-employed, single taxpayer. In 2017, he earned a net profit of $50,000 from his contracting business. He had no other income. He would like to claim a deduction for the $5,000 he paid in medical insurance premiums during the year. He was not eligible for coverage under any other plan. Carlos should, A. Enter this amount as an expense on Schedule C or C-EZ, B. Claim the deduction on Schedule SE, C. Claim the deduction directly on Form 1040, D. Deduct this amount as a qualifying medical expense on Schedule A.
Explanation / Answer
A self employed person who has business income and has no other health insurance coverage can claim the medical insurance ppremium deduction as a personal deduction up to the profit from his business. and self employed person can this personal deduction directly on form 1040.
So option C is right
Carlos can claim this deduction if $5000 directly on form 1040. he is not required to claim this as itamized deduction.