I moved from San Francisco to Chicago last year. It took me 2 months to find a job in Chicago, but I did $1,000 worth of free lance work for my San Francisco employer in that time for which I am paying self employment tax. I paid $500 for health insurance for those 2 months.
Three questions:
1) I have heard that deducting Self employment health insurance is likely to cause an audit. How true is that?
2) Although I only was self employed for 2 months, I paid for my own insurance for 8 months because my new employer didn't give health insurance. Can I only deduct the two months that I was self employed, or can I deduct all eight months that I paid? (well, at least up to the cap of my $1,000 self employment income...)
3)Purely academic, but would my self employment health insurance go on both 1040 line 29 and Schedule A line 1, or does putting it on line 29 exclude it from line 1?
Thank you...