Can self-employed individuals deduct health insurance premiums?

Yes — self-employed individuals can deduct 100% of health insurance premiums paid for themselves, their spouse, and dependents. This is one of the most valuable above-the-line deductions available. **Deductible premiums include:** - Medical insurance (including marketplace ACA plans) - Dental and vision insurance - Medicare premiums (Parts A, B, C, D) if you pay them - Long-term care insurance (subject to age-based limits) **Where to claim it:** Schedule 1, Line 17 — NOT on Schedule C. This reduces your AGI. **Important limitation:** You cannot deduct premiums for any month when you were eligible to participate in a subsidised employer health plan (through a spouse's employer, for example). If your spouse's employer offers health insurance and you are eligible to enrol, even if you chose not to, you may not be able to claim this deduction. **Interaction with QBI:** The health insurance deduction reduces AGI, which reduces taxable income. A lower taxable income may affect the QBI phase-out calculation for SSTB businesses. **Self-employed health insurance and ACA subsidies:** If you receive an Advance Premium Tax Credit (APTC) for a marketplace plan, you must reconcile it on Form 8962. You can still deduct premiums not covered by the tax credit. **Example:** You pay $6,000/year for health insurance. You are in the 22% federal bracket and 5% state bracket. Deduction saves: $6,000 × 27% = $1,620.

• Deduct 100% of health, dental, vision, and long-term care premiums
• Claimed on Schedule 1 Line 17 — reduces AGI (not a Schedule C item)
• Cannot deduct for any month eligible for employer-subsidised plan
• Includes Medicare premiums paid by self-employed individuals over 65
• Reduces AGI — also reduces income tax at state level in most states