TomD8
Level 15

Get your taxes done using TurboTax

A sole proprietor trader reporting only expenses on Schedule C cannot take the self-employed health insurance deduction, because the health insurance deduction requires earned income.  Capital gains are not considered earned income.

 

In order to qualify for the deduction, a day trader would have to form an entity, such as an S Corp or LLC.

 

This is all well explained in this web reference:

https://tradersaccounting.com/2017/10/20/tips-for-self-employed-health-insurance-deductions/#:~:text....

 

**Answers are correct to the best of my ability but do not constitute tax or legal advice.