Can you deduct health insurance when you are self-employed?
Many self-employed people can deduct their health insurance premiums. Here is the short version.
See my priceFree to check. No pressure.Home › Guides › The self-employed health insurance deduction
The basics
If you are self-employed and show a profit, you may be able to deduct what you pay for health insurance for yourself, your spouse and your dependents. The deduction is figured on IRS Form 7206 and lowers your taxable income.
Who usually qualifies
- Sole proprietors and freelancers with a net profit
- Partners with self-employment income
- Shareholders who own more than 2% of an S corporation
The deduction cannot be more than the income your business earned.
The big catch
You generally cannot take the deduction for any month you were eligible for an employer-subsidized health plan, including one through your spouse’s job. That is true even if you did not sign up for it.
What premiums can count
- Medical, dental and vision insurance
- Coverage for your spouse, your dependents and children under 27
- Qualified long-term care insurance, up to an age-based limit
Talk to your tax professional
This is general information, not tax advice. Your tax professional can tell you exactly what applies to you. What we can do is help you find the right coverage, so you know what you are paying.
See your price in about a minute.
One licensed agent in your state. Free to check. No pressure.