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Amanda paid some health insurance premiums for Bill in 2015.

The payments were made directly to the insurer and intended as a gift to Bill. Amanda doesn't have to report payments for medical insurance as gifts, but even if she did, her total gifts for the year were under $14,000, so she does not have to report them.

Bill is not Amanda's dependent. He is self-employed. He is itemizing deductions and has already met the 10%-of-AGI threshold for other medical expenses.

Can Bill deduct the insurance premiums paid by Amanda in 2015?

If so, would this be part of "Self-employed health insurance deduction" on line 29 of form 1040? Or would it be part of "Medical and dental expenses" on line 1 of Schedule A?

  • It would have been much clearer if the money had explicitly passed thru Bill's hands; then it'd be a clear gift and a clear purchase. In the scenario you've given, Bill doesn't have the paper trail to support a deduction; Amanda made the purchase, so I strongly suspect it's under the rules for her return.... and she presumably can't deduct it. But I am neither an accountant nor a lawyer. – keshlam Feb 8 '16 at 0:49
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    I'm voting to close this question as off-topic because it is a legal question. If you need help to interpret the tax court decision you should talk to a lawyer or another enrolled tax practitioner (EA/CPA licensed in your State). – littleadv Feb 8 '16 at 4:45
  • I'm not looking for an interpretation of the 2010 court decision, just wondering if there is any official pronouncement on this issue. I've removed the reference to the tax court decision. If it is still off-topic I apologize. – Robert Feb 8 '16 at 6:45
  • @Robert the tax court decision is the official pronouncement on this issue. You can't get more official than that. – littleadv Feb 8 '16 at 6:54

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