What is Self-employed health insurance deduction?
In short
Self-employed individuals, and S corporation shareholders who own more than 2%, can deduct 100% of health insurance premiums for themselves, their spouse and dependents in arriving at adjusted gross income.
Key takeaways
- The deduction can't exceed the net earnings from the business.
- It isn't allowed for any month the person could join a subsidized employer plan, including a spouse's.
- It doesn't reduce self-employment tax.
Where it's tested
REG: Individual Taxation: Adjustments & Deductions — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
Under the One Big Beautiful Bill Act, what is the state and local tax (SALT) deduction cap, and is it permanent?