The self employed health insurance deduction can be deducted as an adjustment to your income.
You must be either self employed with a net profit or a more than two percent shareholder from an S Corporation from which you receive wages to qualify for the self employment health insurance deduction.
These insurance plans deducted must be established under your business or self employment activity and cannot be more than the net profit of that business or activity.
The self employed health insurance deduction is for insurance premiums for plans that cover medical expenses, dental expenses, and long term care(with long term care the amount of the deduction is limited). It can be for yourself, your spouse and for your dependents.
NEW! The health insurance of your child up to 27 years can also be deducted with the self employed health insurance deduction.
2010 only! Usually this deduction affects only income tax but for tax year 2010 it also reduces the self employment tax.
What is not included in your self employment health insurance deduction?
More ways you can deduct your insurance premiums:
To get the maximum deduction possible look into the last two options before claiming self employment health insurance deduction.
Updated December 24, 2012
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How much will you get for the Child and Dependent Care Credit?
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For more information or to see if you are eligible see the Child and Dependent Care Credit page.
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