Self employed

The deduction for health insurance if you are self-employed is not a business expense on Schedule C.  It does not reduce your profit from your self-employment.  Only health insurance for employees is deductible as a business expense.  Instead, it is a deduction on Form 1040 Schedule 1.  In order to take a deduction for your health insurance if you are self-employed, you must have a profit from your self-employment.  The deduction is limited to the lesser of your profit, or the cost of your insurance.  To deduct your Medicare insurance, if you are self-employed:

1. Open or continue your return.
2. Navigate to the Schedule C section:
   • TurboTax Online/Mobile: Go to Schedule C.
   • TurboTax Desktop: Search for Schedule C and select the Jump to link.
3. If this is your first time entering info about your self-employment work, you’ll be asked some initial questions.
   • If you previously entered info on your self-employment work, select Edit next to the type of work you entered previously.
4. On the Select the expense categories you have screen, select Less common to show all expense categories. Browse the options and select Health insurance premiums, then select Continue.
5. On the Expenses section, find the Health insurance premiums section and select Start.
6. On the Tell us about health insurance premiums for your [business] work screen, enter the total amount of health insurance premiums you paid.

For more information, see Where do I enter my health insurance premiums if I'm self-employed?