Can a minister with a valid Form 4361, deduct health insurance premiums that he paid on line 29 of form 1040?
Ministers use Form 4361 to claim exemption from tax on self-employment income. A minister is an employee in every respect, except for purposes of the self-employment tax. The health insurance premium deduction relates only to self-employed business owners and is not available for employees.
Form 1040 Instructions state that in order to deduct insurance premiums on line 29 of Form 1040:
"One of the following statements must be true.
- You were self-employed and had a net profit for the year.
- You were a partner with net earnings from self-employment.
- You used one of the optional methods to figure your net earnings from self-employment on Schedule SE.
- You received wages in 2012 from an S corporation in which you were a more-than-2% shareholder. Health insurance premiums paid or reimbursed by the S corporation are shown as wages on Form W-2.
However, the minister may deduct the health insurance premiums on Schedule A.