self-employed health insurance deduction

I am self-employed but my business had a loss for 2011.  Does that mean I can't take a deduction for SE health insurance premiums?


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Yes, your deduction will be limited to your net profit.  But whatever you can't claim as self-employed health insurance can be claimed as a medical deduction on Schedule A.

For more information:

Health Insurance Coverage

You can deduct up to 100% of health insurance premiums for you, your spouse and your dependents if you are self-employed and have a net profit from the business for which you created the plan.

Include health insurance premiums you made for your dependents who were under age 27 at the end of 2011.

Medicare B premiums should be entered here instead of in the Social Security Benefits section.

Do not include:
- long-term care premiums - this information should be entered on the next Interview screen
- any amounts paid from retirement plan distributions that were nontaxable because you are a retired public safety office
These deductions are figured as part of your Form 1040, not as part of Schedule C.

If you or your spouse could participate (even if you declined coverage) in an employer's health plan at any time during a given month, you cannot take the deduction for that month. However, payments for those months are deductible on Schedule A if you itemize deductions.

The deduction may be limited if the business has low net earnings. This means that you may not be able to deduct 100% of your premiums.

 This entry should be reduced by any reimbursement received.

Note: These deductions are figured as part of your Form 1040, not as part of Schedule C.
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