What is Self-Employed Health Insurance Deduction?
The self-employed health insurance deduction allows self-employed worker to deduct the cost of monthly health insurance premiums when calculating their income tax. Self-employed people have to pay a self-employment tax in addition to income tax. Company employees generally pay a portion of their taxes to fund Social Security and Medicare, with the employer also paying a portion. The self-employed must pay both portions and complete self-employment tax and income tax forms when filing their tax return. The self-employment health insurance deduction helps offset these costs by giving business owners, partners and others who qualify for an income tax credit. How to Claim Self-Employed Health Insurance Deduction To claim the self-employed health insurance deduction, you must meet the following criteria: You are a self-employed individual (a 1099 contractor), a partner or co-owner of a business, or a shareholder who earns wages and has at least a 2% stake in an S corporation. Refer to IRS.g
