Self-Employed Health Insurance Deduction

Self-employed health insurance premiums may be deductible if you are not eligible to participate in a subsidized plan of your spouse. This deduction is taken on Form 1040 page 1. Long-term care insurance premiums also may qualify for the deduction, subject to limits based on age. Medicare premiums are also deductible as self-employed health insurance, even if it’s coverage for the spouse of the self-employed person. If you take the Self-Employed Health insurance deduction, then the premiums are not deductible on Schedule A as medical expenses. The amount of the deduction is limited to the income from the trade or business under which the insurance plan is established less applicable retirement deductions and ½ of the self-employment tax on that income. If your deduction is limited, the remainder of your premiums that are not deducted as Self Employed Health Insurance Premiums, can be deducted on Schedule A as medical expenses, subject to the applicable threshold.