Can Health Insurance Be a Deductible Expense for a Schedule C Filer?
Medical insurance premiums and long-term-care premiums are 100% deductible for self-employed individuals–as long as there is profit for the business. Otherwise, if you itemize, the costs are deducted on Form Schedule A as a medical expense. In order to save money, I try to encourage self-employed individuals to find a way to participate in a group health insurance plan. It is very expensive to carry one’s own individual plan, and if the owner uses his insurance quite often, the premium will be greatly increased but not likely if he is a member in a group policy. What Other Concerns are there for an Unincorporated Individual? The biggest reason for unincorporated individuals to have a large tax bill by April 15th is the cost of their own social security taxes. Most employees have the expense withheld from their weekly paycheck, but the self-employed individual has to pay his own tax and the employers share together. This feels like double-taxation to most individuals and without proper
