Across America, a wide variety of unique employment situations have materialized. Some people work multiple jobs. Some have ceased their commutes to work from home indefinitely. And others still have left the corporate setting completely to become entrepreneurs, or even self-employed “solopreneurs.”1 Show
Going from having employer coverage to purchasing your own individual health insurance policy can come with a certain amount of confusion about the process and variation in costs. Indeed, health insurance premiums have been increasing over the last 10 years.2 Premium tax credits, or subsidies, can be helpful for the self-employed, who have traditionally had to foot the entire bill. If you’re self-employed, you may be eligible for the self-employed health insurance deduction.3 How Do I Get Insurance If I Am Self-Employed?Like any other Affordable Care Act-approved plan on the individual Health Insurance Marketplace, self-employed health insurance plans can only be purchased during an Open Enrollment Period unless you have a qualifying life event.6 No matter what, learning about the self-employed health insurance deduction can be helpful for those who will need to cover the cost of health insurance on their own. The self-employed health insurance deduction is a tax benefit allows 100% of health insurance premiums for you and your dependents to be deducted on your tax return.7 Self-employed health insurance deductions are applicable to insurance premiums for medical, dental, or long-term care insurance.8 Deduction EligibilityAccording to the IRS, you may qualify for the self-employed health insurance deduction if one of the following applies to you:8
Long-Term Care Premium DeductionsThere is a set limit on how much you can deduct for your long-term care insurance premiums. As of 2020, the total deduction was as follows:8
How Can a Self-Employed Person Get Health Insurance?A self-employed person can get health insurance by applying during the Open Enrollment Period,4 which occurs November 1 - December 15. If you do not enroll during this window, you may only apply for coverage if you qualify for a Special Enrollment Period.9 When you do apply, be sure to check your eligibility for a self-employed health insurance deduction. HealthMarkets can help you compare your health insurance options. With our FitScore® technology, we can search thousands of plans from hundreds of insurance companies to help you find the plan that fits your needs. Start comparing your options and find a self-employed health insurance plan today. 46975-HM-0121 References: Disclaimer: How much can you deduct for health insurance premiums selfSelf-employed individuals may be eligible to deduct up to 100% of their health insurance premiums on their tax return. You can claim the self-employed health insurance deduction even if you do not itemize deductions.
What qualifies as selfTo qualify for the deduction, you must meet two requirements: You have no other health insurance coverage. You may not take the self-employed health insurance deduction if you're eligible to participate in a health insurance plan maintained by your employer or your spouse's employer. You have business income.
Can I deduct my health insurance premiums through my business?Is health insurance a business expense for self-employed? You can deduct health insurance costs as a deductible business expense if your business pays them for employees. This doesn't apply if you're the employee in your own business.
Is private health insurance deductible with self employment?Key takeaways
For the self-employed, health insurance premiums became 100% deductible in 2003. The deduction that allows self-employed people to reduce their adjusted gross income by the amount they pay in health insurance premiums during a given year.
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