Are you asking if you can use that as an exception to the 10% early withdrawal penalty for the IRA distribution?
Maybe - if it was to pay medical insurance premiums during a period of unemployment.
Yes, you may enter them under medical expenses. However, you may qualify for self-employed health insurance deduction, which is a much better benefit for you. You can deduct the premiums as self-employed (SE) insurance deduction - if a policy is either in the name of the business or the individual owning the business (you). The deduction is limited to the smaller of:
If you do have net profit, you may enter your medical premiums when going through your business expenses...
If you don't qualify, or if there's a remaining amount that doesn't qualify due to your net profit, then that amount is entered as medical expenses in Deductions & Credits: