The dental insurance expense cannot be deducted as a business expense on Schedule C; only the business's expenses for health insurance for employees and not the sole-proprietor are deductible as business expenses on Schedule C. Instead, the out-of-pocket cost of health insurance for the sole-proprietor is deductible on Form 1040 line 29. Employee health insurance expenses are entered as Employee benefits while the sole-proprietor's health insurance is entered under Health insurance premiums. Each is a separate section under Less common business expenses.
