Deductible health care expenses for self employed US taxpayers

[stanfellboone]

There is an answer from last year that health insurance expenses for out of pocket (OOP) expenses such as co-pays and deductibles are deductible from any taxpayer's income, with certain restrictions, a long standing IRS policy.

What's not clear for self-employed individuals is whether those OOP health care expenses (co-pay and deductibles) can be included on Form 7206 in addition to the premiums. The instructions for that form state the following: " [as a self-employed individual...] [y]ou may be able to deduct the amount you paid for health insurance, which includes medical, dental, and vision insurance..." Are the OOP expenses considered part of the "...amount you paid for health insurance..." or does the IRS permit inclusion of only the premiums you pay for your health insurance.

This question could use a rigorous answer based on previous IRS guidance, if available, because some of the OOP can add up to a large amount very quickly depending on the type of insurance chosen by a self employed worker.

Thanks in advance for any responses

[Vanessa A · Accepted solution]

As the form states, you can deduct your out of pocket INSURANCE premiums as self employed health INSURANCE deduction.  If you want to deduct the other medical expenses you incurred such as co-pays, deductibles, etc, you would need to itemize them on Schedule A.

The simplest answer is that form 7206 line 1 says Enter the total amount paid in 2024 for health insurance coverage established under your business. 

 Insurance does NOT include does not include co-pays or other out of pocket expenses. They are separate items.