When self-employed can you deduct the out of pocket cost for your health insurance?

Question

When self-employed can you deduct the out of pocket cost for your health insurance?

Answer 1

If you are self employed and have some income for the tax year on your Schedule C then you can deduct 100% of your health insurance premiums (for you and your whole family). In other words you cannot take the deduction if the deduction causes you to have a loss.

You can verify this by looking at the front of the 1040 on line 29.

There is more detail on the specifics on page 26 of the IRS Form 1040 directions. Also, here is some additional information on self employed health insurance.

Answer 2

Yes, in most cases.

Answer 3

yes

Answer 4

Yes you can if you itemize deductions on your return. Also you can deduct out of pocket costs for prescriptions and copays to the doctor and any lab tests and xrays.

Answer 5

I am an "S" Corp, and can legally deduct all medical costs from my business.  I think it depends on how your taxes are filed - as an individual, partnership, LLC, etc.

Answer 6

If you are filling out a schedule c you can deduct the premiums. The out of pocket would be deducted on your itemized deductions.

If you switch over to a high deductible health plan you can then open a health savings account (HSA) and you will be able to make the money you spend on your out of pocket expenses 100% tax free.

If you want to learn more about HSA's I would check out http://www.hsainsider.com/

This type of plan can save you thousands in premium.