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.
Medicare B and Medicare D 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
- Any amounts included on Form 8885, line 4
- Any advance monthly payments shown on Form 1099-H, Advance Payments for the Health Coverage Tax Credit
- Any payments for months you received the benefits of advance payments for the Health Coverage Tax Credit (Form 8885)
These deductions are figured as part of your Form 1040, not as part of Schedule C.
Do not include health insurance purchased through a Health Insurance Marketplace (also known as an exchange). These premiums are entered on Form 1095-A in the program. Also, do not include any amounts from line 4 of the Health Coverage Tax Credit (Form 8885).
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.
