60.1K

Verified Solution

Link Copied!

Taxpayer, who is self-employed, files a joint return with Spouse. This year, Taxpayer paid $6,500 for health insurance premium for himself and earned net profit of $60,000 from his self-employment activity. Select the statement that best describes the circumstance under which Taxpayer will be permitted to deduct the premiums FOR AGI.

Taxpayer, who is self-employed, files a joint return with Spouse. This year, Taxpayer paid $6,500 for health insurance premium for himself and earned net profit of $60,000 from his self-employment activity.

Select ONE statement that best describes the circumstance under which Taxpayer will be permitted to deduct the premiums FOR AGI.

1. There are no circumstances under which Taxpayer may deduct the premiums FOR AGI; medical expenses are only deductible as itemized deductions

2. Neither Taxpayer nor Spouse participates in an employer-sponsored plan although both are eligible to participate in a plan sponsored by Spouse's employer

3. Taxpayer can deduct the health insurance premiums regardless of the insurance status of Spouse

4. Spouse's employer sponsor's a plan in which Spouse participates but in which Taxpayer is not eligible to participate

5. Spouse and Taxpayer are eligible to participate in an employer-sponsored plan offered by Spouse's employer, but Taxpayer chooses not to participate

6. Previous QuestionPreviousNext QuestionNext

Answer & Explanation Solved by verified expert

See Answer