Tax Deduction For Insurance Premiums For People Who Are Self Employed
Basically, if you are self employed and have a net income, you can deduct the cost of health insurance premiums for yourself, your spouse and/or your dependents. However, if you report a net loss on your 1040 tax form, you are not eligible to deduct the cost of your health insurance premiums.
NOTE: You cannot deduct:
- Insurance costs for any month in which you were eligible to participate in a group health insurance plan through your or your spouse's employer. For example, if you were eligible to participate in a health play provided by your spouse's employer from September 30 through December 31, you cannot use amounts paid for health insurance coverage for September through December when you figure your deduction.
- Medicare premiums.
- Amounts paid for health insurance coverage from retirement plan distributions which were not taxable because you are a public safety officer.
For information about what expenses are considered to be medical expenses for tax purposes, click here.
- Self Employed: Health Insurance For People Who Are
- How To Obtain Health Insurance If You Are Self-Employed