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Problem 10-25 (LO. 2) For calendar year 2018, Jean was a self-employed consultant with no employees....

Problem 10-25 (LO. 2)

For calendar year 2018, Jean was a self-employed consultant with no employees. She had $80,000 of net profit from consulting and paid $7,000 in medical insurance premiums on her policy covering 2018. How much of these premiums may Jean deduct as a deduction for AGI? As an itemized deduction? If an amount is zero, enter "0".

Self-employed persons can deduct (blank)% of their medical insurance premiums as a deduction for AGI in 2018. Thus, Jean may deduct $ (blank) as a deduction for AGI and she may deduct $ (blank) as an itemized deduction (subject to the AGI floor).

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Answer #1

Self-employed persons can deduct 100% of their medical insurance premiums as a deduction for AGI in 2018.Thus,jean may deduct $7,000 as a deduction for AGI and she may deduct $0 as an itemized deductions.

Reason : - none of the amount is deductible as an itemized deduction. Jean cannot double deduct the amount of medical insurance premium. If she deduct the medical insurance premium under self-employed health insurance deduction, she cannot deduct the same expense in itemized medical expenses.

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