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Self-Employed Health Insurance Deduction

The entire premium for Medical Care Insurance for the following may deducted from Gross Income:
(Line 29 1040):

  1. the taxpayer,
  2. the taxpayer’s spouse,
  3. the taxpayer’s dependents, and‘
  4. any child (as defined in section 152(f)(1)) of the taxpayer who as of the end of the taxable year has not attained age 27.
    (HR 4872 - Obama Care
    §162(l)(1)
    §401(c)(1))

Employer Links

 IRS Publication 502(all Medical Expenses)
Insurance Premiums

IRS Publication 535 HTML pdf page 18

A self-employed individual with a net profit reported on Schedule C, C–EZ, or F.
Schedule C

1040 Form
irs.gov/1040

 

A partner with net earnings from self-employment reported on line 15a of Schedule K–1 (Form 1065). 
IRC Section 162 (l)

A shareholder owning more than 2% of the outstanding stock of an S corporation with wages from the corporation reported on Form W–2.

The insurance plan must be established under your business. (The publication says this, it doesn't appear the code does though)  You may be allowed this deduction whether you paid the premiums yourself or your partnership or S corporation paid them and you included the premium amounts in your gross income. For sole proprietors, the policy does not have to be in the name of the business if it is in the name of the sole proprietor. Take the deduction on line 29 of Form 1040.
IRS Publication 535 HTML pdf page 18

Nolo Press How Sole Proprietors Are Taxed

Types of Business Organization

Similarly Situated Employees
How to determine Similarly Situated Employees

Small Biz Tax Credit Tax Breaks HCTC Self Employed Taxes?Qualification Rules Blue Cross-Anthem Aetna Kaiser Cal Choice PacifiCare - UHC Health Net Blue Shield Health Reform Self Funded Plans Dental Vision Section 125 Disability Resources Site Map

  

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