Question

Required Information [The following information applies to the questions displayed below.) 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 premlum for Smithers before any AGI limitation. a. Smithers Is single and the self-employment Income is his only source of income. Deductible as either a AGI or itemized deduction

Answer 1

A) .

Deductible as either a AGI or itemized deduction $ 2,200.

Explanation;

Smithers can deduct $ 2,200 either as a deduction for AGI or Claim $2,200 as an itemized medical expense.

B) .

Deductible as an itemized deduction only $ 2,200

Explanation;

Smithers can claim only $ 2,200 as an itemized medical expense. Even though he is self employed, he is not eligible to deduct the health insurance premium as a for AGI deduction because he is eligible to participate in his employers plan ( Even though he did not Actually participate )