Question

In: Accounting

Minister B pays SE tax on her wage income although she is treated as an employee...

Minister B pays SE tax on her wage income although she is treated as an employee under the common-law rules. She is paid a base salary and receives a housing allowance. Where does Minister B deduct her health insurance costs?

A. Page 1 of Form 1040
B. Schedule A of Form 1040
C. Schedule C of Form 1040
D. Health insurance costs are not deductible by Minister B

Solutions

Expert Solution

Solution: Page 1 of Form 1040

Explanation: If Minister B is a common law employee can claim health insurance deduction on page 1 of Form 1040. This deduction treatment unlike an itemized deduction, is beneficial as it lowers the adjusted gross income (AGI).


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