Can I deduct health insurance premiums if I'm self-employed?

by TurboTax•33• Updated 2 months ago

Yes, you can deduct your health insurance costs if you're self-employed. This includes medical, dental, and long-term insurance for yourself, your dependents, and your spouse.

There are two ways to do this: through the self-employed health insurance deduction or as an itemized deduction.

After you enter your info in TurboTax, we'll check to see if you qualify for either or both of these deductions.

Do I qualify for the

self-employed health insurance deduction

To get this deduction, your Schedule C must show a net profit.
The deduction amount generally can't exceed your net profit amount.
If you (or your spouse if filing jointly) were eligible to participate in an employer's health plan during any given month—even if you declined the coverage—the premium you paid for that month can't be claimed under this deduction.
Health insurance premiums you paid for your child, even if you aren't claiming them as a dependent, are eligible for this deduction as long as your child was age 26 or younger at the end of 2023.
The self-employed health insurance deduction shows up on Schedule 1, line 17.

Do I qualify for the itemized deduction

Any out-of-pocket premiums you couldn't claim under the self-employed health insurance deduction can be used as an itemized deduction instead.
You can't deduct insurance premiums paid with pretax or tax-free dollars, nor can you claim any premiums you already claimed under the self-employed health insurance deduction.
Itemized deductions show up on Schedule A.

To enter it as a self-employed health insurance deduction, follow these steps:

In the Wages & Income section, select Edit/Add next to Self-employment income and expenses.
When entering information for your business expenses, locate the Less common business expenses section and select the down arrow to expand it.
Select the option for Health Insurance Premiums (typically found on page 2 or you can search for Health insurance premiums in the search box), then select Continue.
The next screen shows your list of expenses. Select Start next to Health Insurance Premiums.
Enter Medicare or Medicare Premiums in the description field, then enter the amount in the box next to it, and select Continue.