Shanika is a self-employed hair stylist and had net earnings from self-employment of $4,100.She paid $375 per month for health insurance over the last year.Shanika is entitled to a for AGI deduction for health insurance premiums of:

Question

Quizplus · Accepted Answer

Self-employed individuals can deduct 100% of their health insurance premiums from their net earnings for the purpose of calculating their adjusted gross income (AGI), up to the amount of their net earnings from self-employment. Shanika's net earnings from self-employment are $4,100, and her total health insurance premiums paid are $4,500 ($375 x 12 months). Since her premiums exceed her net earnings, she can deduct up to $4,100, which is the amount of her net earnings from self-employment.

Shanika Is a Self-Employed Hair Stylist and Had Net Earnings