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Can a self-employed individual deduct health care premiums? |
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Self-employed individuals can claim a deduction for the cost of their health insurance, which is reported on Line 29 of Form 1040. However, one of the following must be true: the business must have a net profit for the tax year, an optional method was used to calculate SE income, or you received wages from a S-Corp in which you owned more than 2% of the shares. Additionally, the insurance plan must be in the name of the owner or the name of the business. However, if your spouse is eligible to participate in an employer-sponsored plan for part of or an entire month, the premiums paid during those months are nondeductible. |
