Notes · Tax · small business
If you're self-employed and buying your own health insurance, you may be leaving money on the table
The self-employed health insurance deduction is above the line, not subject to the 7.5% floor, and capped at your net self-employment profit.
If you're self-employed and buying your own health insurance, you may be leaving money on the table.
The self-employed health insurance deduction lets you deduct 100% of premiums for medical, dental, and qualifying long-term care coverage, for yourself, your spouse, and your dependents. It's an above-the-line deduction on Schedule 1, which means:
- You claim it whether or not you itemize
- It's not subject to the 7.5%-of-AGI floor that applies to Schedule A medical expenses
- It's capped at your net self-employment profit for the year
It's one of the most overlooked deductions for freelancers, consultants, and small business owners who pay for their own coverage. Worth checking before you file.
Educational only, not tax advice. Talk to your CPA about your specific situation.