The code section that provides for the health insurance deduction for self employed is Section 162. There are no amendments to this code section that were affected by Patient Protection act. Therefore, it is somewhat safe to conclude that this deduction will still be available. However, its congress and we know that congress is capable of changing its mind on a whim.
This deduction and the subsidy for health insurance raises a number of tax planning issues:
Do you take the subsidy currently and have a reduced deduction which could cause you to loose the deduction.
Do you use the higher priced Gold plans which cost more but also increase this deduction which could qualify you for a subsidy that offsets the higher cost.
How much input does Congress have? Obama/Sebelius just unilaterally amend the law every other day. That's why it's fruitless to plan ahead based on what you know today.
I spoke to my CPA gnomes better half. The CPA attended a briefing on Obamacare, more bad news. I hear from another gnome the R & B Hlock types are bracing for telling clients the bad news...
It sounds like this tax season is gonna suck on ice for those giving the bad news, and for those receiving it.
Be good to your CPA, buy them Aspirin or Jack Daniels?
By 04/15 a lot of people low-info types are gonna be disillusioned if not out right angry @ Dear Leader who they voted for, lied to them...
I don’t qualify for a subsidy, which is why I am asking. Thanks. You have helped.