Tax Administration Policy - Federal Health Care Premium Credit
According to Revenue Division Business Tax Administrative Rule 600.93-4A (Self-Employment Tax Deduction and Health Care Premium Deduction), self-employed individuals who are allowed a federal adjustment for a portion of their health insurance expenses may take a deduction which equals the federal deduction as an adjustment to net income for City of Portland Business License Tax and Multnomah County Business Income Tax purposes.
In certain circumstances, a federal credit (such as the Health Coverage Tax Credit) can be claimed in lieu of the federal deduction. In cases where this credit is taken by self-employed individuals and there is a corresponding modification (subtraction) allowed by the State of Oregon, the City of Portland and Multnomah County will allow a subtraction on Form SP for the amount of the health insurance premiums allowed as a subtraction by Oregon.
2/28/2012 Thomas Lannom