If you paid COBRA premiums, and the policy is in a former employer's name, enter it as a personal medical expense (on the Enter Insurance Premiums screen, which is near the end of the medical expenses section).
For all other self-employed health insurance premiums, follow these steps to enter them in the Home & Business version:
- With your return open, search for business expenses inside your TurboTax Home & Business program
- Select the jump-to link at the top of your search results
- On the First, select the expenses you know you had screen, select Edit next to your business
- Select Start or Update next to Other Common Business Expenses
- On the Let's write off some business expenses screen, select Start or Update next to Long-term care insurance
As a self-employed person, you may be eligible to deduct health insurance premiums for yourself, your spouse, and your dependents. The policy can also cover your child under age 27, even if you’re not claiming them as a dependent. Keep in mind that you’re only eligible to claim the write off for health insurance premiums during the months when you're not eligible to participate in any employer-subsidized health plan. This is known as the month-by-month eligibility rule.
If your self-employment activity is a sole proprietorship that generated a tax loss for the year, you’re not allowed to claim the deduction because your deduction can’t exceed the earned income you collect from your business. This is known as the earned income limitation rule.