If you have self-employment income you may be able to claim a health insurance deduction on your tax return for yourself, your spouse, or your dependent.
Health Insurance Deduction Calculation
In order to determine your allowable health insurance deduction, you have to subtract half of your self-employment tax, and any retirement contributions you make to an IRA, KEOGH or other retirement plans from your earned income.
After these deductions, you may claim the full cost of your health insurance expenses- as tax deduction from the amount left.
Eligibility
If you have medical insurance coverage through an employer (having another job) or through your spouse’s employer, you are not eligible for this tax deduction.
If your health insurance payments exceed your earned income for that taxable year, you cannot deduct the expenses for health insurance.
You are eligible for this tax deduction, even of you do not have itemized deductions.
Tax News Updates:
Abortion, halt to refugees revived
The House also passed bills allowing employers to drop insurance coverage for abortion. Also passed was a bill requiring an ID to vote and a bar on the state from creating a health exchange, as required under President Obama's Affordable Care Act.
Bill Clinton, Boehner, and Some Other Rich White Guys Had a "Summit" and ...
... by eliminating deductions that help the struggling middle class, like the mortgage interest deduction, and removing the employer health insurance deduction that provides millions of working Americans with at least a modicum of health coverage.
Where President Obama and Mitt Romney stand on lowering small business taxes
In the Budget, the President proposed providing tax cuts for small businesses that increase their hiring or make new investments, doubling the deduction for startup costs, and reforming and expanding the health insurance tax credit for small businesses ...
Council to discuss employee health plan, cable license
... pays 100 percent of its employees' health insurance plans and proposes to do so in 2012-2013. For an employee with a spouse on his or her plan, the deduction for each pay period is $37.70. That deduction could increase to $41.85 per pay period.
