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I'm a self employed finish carpenter with a DBA. I have a health, disability, accident and sickness policies. Which policy if any can I deduct the monthly payments. Also I recieved some payments from my disability policy while out with shoulder surgury. I'm I require to report this income as taxable? Thanks
 

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Nest Home Improvement
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I'm a self employed finish carpenter with a DBA. I have a health, disability, accident and sickness policies. Which policy if any can I deduct the monthly payments. Also I recieved some payments from my disability policy while out with shoulder surgury. I'm I require to report this income as taxable? Thanks

I would ask your accountant for their advice. However, premiums paid for health insurance, disability, accident and sickness all seem to be business expenses. Any payments you received from disability would likely be considered income (they will likely send you a 1099-misc at the end of the year).
 

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Maker of Fine Sawdust
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Any insurances you have that are in the businesses name should be deductible from gross receipts. Any income you get from your disability insurance is income. Income gets taxed. Anything you buy (tools, services, and some food) in the businesses name should come off the final gross income. Some of the larger purchases will have to be depreciated.

Ask your accountand or CPA.
 

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Any insurances you have that are in the businesses name should be deductible from gross receipts. Any income you get from your disability insurance is income. Income gets taxed. Anything you buy (tools, services, and some food) in the businesses name should come off the final gross income. Some of the larger purchases will have to be depreciated.

Ask your accountand or CPA.
Seeing how's he a DBA (meaning sole-proprietor, most likely), I'd highly doubt that any of those policies are in the business name. Therefore, they're not deductible from gross receipts. If he itemizes deductions, there a healthcare deduction, but it's limited to a small percentage of gross income.
 

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DBA you are the business and the business is you. As long as the policy has the company name on it, it is deductable.
 

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I'm a self employed finish carpenter with a DBA. I have a health, disability, accident and sickness policies. Which policy if any can I deduct the monthly payments. Also I recieved some payments from my disability policy while out with shoulder surgury. I'm I require to report this income as taxable? Thanks
health insurance is deductible from the federal income tax on the bottom of the first page of the 1040, but it is still included in income for self-employment taxes on Schedule SE.

If you are a sole prop none of the other policies are deductible. If you have a partnership or S-Corp the policies or part of the policies that cover partners or shareholders is not deductible.

Good news about that is since the premium on the policy was not deductible, if you ever make a claim (which it sounds like you did) the income from the policy is not taxable.
 

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If you deduct the premiums then you pay taxes on the payout (income). Personally I would rather NOT deduct the premiums so that the payout is not taxed. This will allow you have insurance (talking replacement income insurance in this example) for less than your actual income (30% less) This should lower your premiums saving you a decent amount of your premiums.
 
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