Jena is a self-employed fitness trainer who had net earnings from self-employment of $23,500.She paid $525 per month for health insurance over the entire last year.Jena is entitled to a for AGI deduction for health insurance of:

Question

Quizplus · Accepted Answer

Jena can claim a deduction for her health insurance premiums on line 29 of Form 1040, which is an above-the-line deduction that reduces her adjusted gross income (AGI). The maximum deduction for self-employed individuals is equal to the premiums paid during the year, up to the amount of net earnings from self-employment. In this case, Jena paid $6,300 in health insurance premiums ($525 x 12 months) and had net earnings from self-employment of $23,500. Therefore, her deduction is limited to $6,300, which is less than her net earnings from self-employment, so the correct answer is B) $6,300.

Jena Is a Self-Employed Fitness Trainer Who Had Net Earnings