Self-Employed Health Insurance Deduction Calculator
Self-employed? You can deduct 100% of your health insurance premiums. This calculator shows exactly how much you save — including the interaction with other deductions and the income limitation.
Self Employed Health Insurance Deduction
Estimate your tax savings from the self employed health insurance deduction
Self employed individuals can deduct health insurance premiums for themselves, spouses, dependents, and children under 27. The deduction cannot exceed net self employment income and cannot be used to create a net loss. This is an above the line deduction (Form 1040, Schedule 1). Does not apply if you're eligible for an employer-subsidized plan.
Frequently Asked Questions
Can I deduct health insurance premiums as a freelancer?+
Yes. If you're self-employed and not eligible for employer-sponsored coverage, you can deduct 100% of health, dental, and long-term care insurance premiums for yourself, spouse, and dependents. This is an above-the-line deduction.
How much does the health insurance deduction save me?+
It depends on your marginal tax bracket. A $6,000 annual premium deduction saves $1,320 at the 22% bracket or $1,920 at the 32% bracket. Plus it reduces your self-employment tax. Total savings: $2,232-$2,832.
Is there a limit on the health insurance deduction?+
Yes. The deduction can't exceed your net self-employment income from the business for which the insurance plan is established. If your SE income is $30,000 and premiums are $8,000, you can deduct the full $8,000.
Can I deduct health insurance premiums as a freelancer?
Yes. If you're self-employed and not eligible for employer-sponsored coverage, you can deduct 100% of health, dental, and long-term care insurance premiums for yourself, spouse, and dependents. This is an above-the-line deduction.