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Self employed support scheme extended. Unlike other tax deductions for self employed people the self employed health insurance deduction isnt taken on schedule c or on a business return. This health insurance write off is entered on page 1 of form 1040 which means you benefit whether or not you itemize your deductions. The deduction that allows self employed people to reduce their adjusted gross income by the amount they pay in health insurance premiums during a given year.
The self employed health insurance deduction applies to health insurance premiums for yourself your spouse and your dependents. Because its an adjustment to income you claim it on schedule 1 attached to your form 1040 federal income tax return. This includes dental and long term care coverage.
Self employed health insurance deduction. For example if your business earned 12000 but premiums cost you 15000 you cant claim the entire 15000. If you are self employed you may be eligible to deduct premiums that you pay for medical dental and qualifying long term care insurance coverage for yourself your spouse and your dependents.
If you qualify this deduction will reduce your adjusted gross income agi. In a nutshell the self employed health insurance deduction allows eligible self employed folks to deduct up to 100 of health dental and long term care insurance premiums for themselves and for their spouses dependents and non dependent children under age 27. A child includes your son daughter stepchild adopted child or.
If you have an s corp you should be aware of a 2015 notice regarding reimbursement for health premiums. Your self employment income is calculated on schedule c or f and it must be equal to or exceed the amount of your health insurance deduction.
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