IRS Health Insurance Deduction INFO For Self Employed Individuals

August 12, 2010

If you have self-employment income you may be able to claim a health insurance deduction on your tax return for yourself, your spouse, or your dependent.

Health Insurance Deduction Calculation

In order to determine your allowable health insurance deduction, you have to subtract half of your self-employment tax, and any retirement contributions you make to an IRA, KEOGH or other retirement plans from your earned income.

After these deductions, you may claim the full cost of your health insurance expenses- as tax deduction from the amount left.

If you have medical insurance coverage through an employer (having another job) or through your spouse’s employer, you are not eligible for this tax deduction.

If your health insurance payments exceed your earned income for that taxable year, you cannot deduct the expenses for health insurance.

You are eligible for this tax deduction, even of you do not have itemized deductions.
More information can be found online at


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