Minimal S/E Income and S/E Health Ins. Deduction

I have a retired client that coaches ball part time. He receives a 1099 for this income each year, but is small - usually between $2,000-$3,000. Would you take his Medicare premiums (roughly $1,600) as a S/E Health Ins. deduction? Can this deduction be taken no matter the amount of s/e income or time spent on the activity? I've not seen anything that limits this in any way.

If he has a trade or business and no access to subsidized health care, I see no problem. Does he have a trade or business in your view or is it a hobby?

seems like trade or business - does he claim any expenses?

No expenses paid out, as the club that pays him pays his travel expenses. He has coached for years, just does less of it now. Guess it is hard to say if it is a business or a hobby. Always has a profit, so I'll say a business!

A hobby, conceptually, is something that generates tons of expenses and little to no income (my own definition). The hobby loss rules were not written for (net) taxable income-generating activities.


( Not to confuse with an actual businesss that runs losses for a period of time.)

Any activity that generates (proportionally) high taxable income with low (zero?) expenses shouldn’t be a concern (ie, hobby)...IMO

Agree with HD. I always try and remember to deduct SE health insurance when there is a schedule C with a profit.

Thank you for the replies. I try to take the deduction where I can, but in instances like this - where there is minimal income and probably only done for a 2-3 month period, I'm always a little hesitant for some reason.

In the new "gig economy " I'm seeing lots of 1099's box 7 with relatively small amounts. I don't see this as a major concern and would take the deductions you are entitled to .