Tax deductibility of COBRA premiums for LLC members
💸 moneysocial problemSingle report ●●●●●
A former employee and LLC member is unsure if COBRA premiums paid for themselves and their spouse can be deducted as a business expense on their LLC's tax return, or if they must purchase a separate external insurance plan to qualify for a tax deduction.
What people do today
- Consulting a tax professional
- Researching IRS Publication 535
- Purchasing individual health insurance
🔧 Fix this
Ideas a builder, maker or community group could start on:
- A tax-compliance tool that allows LLC members to input their specific business structure and insurance type to receive a clear 'deductible vs. non-deductible' determination.
- A curated marketplace of tax-advantaged health insurance plans specifically tailored for small business owners and LLC members.
- A simplified, plain-language guide or chatbot trained on IRS tax codes specifically for self-employed individuals managing health insurance transitions.
Real voices
“will the COBRA premiums be a deduction on LLC? or should I buy external insurance to make it tax deductible.”
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