Self-Employed Health Insurance Deduction

If you are self-employed and have a profit from self-employment, you may claim a special deduction on Form 1040, Line 29, for 100% of health insurance premiums you paid for yourself, spouse and your dependents. The policy can be in your name or in your business' name.

If you pay medical insurance premiums to cover your employees, you can deduct that amount as an ordinary business expense right on your Schedule C.

If you face high medical bills and itemize your deductions, you might be able to deduct some of your medical expenses. The deduction is taken on Schedule A of your income tax return. It covers a wide range of medical expenses, and also includes premiums you pay for health insurance or qualified long-term care. You can't double deduct though. If you deduct your health insurance premiums under the self-employed health insurance deduction, you can't include them in your medical expenses.