Self-employed individuals who buy health insurance for themselves and their eligible family members may be able to deduct 100% of their premium payments.

Who qualifies?

  • Sole proprietors,
  • General partners,
  • Limited partners receiving guaranteed payments, and
  • Greater-than-2% S corporation shareholders receiving wages

Which expenses are deductible?

The deduction is available for premiums paid for medical, dental, and qualified long-term care insurance for self-employed individuals and their spouses, dependents, and children who haven’t reached age 27 by year-end (even if the children and not dependents). The health insurance plan must be established under the self-employed business. However, the insurance may be purchased I either the name of the business or in the self-employed individual’s name. (Partners and S corporation shareholders must be reimbursed for premium payments hey make individually and include those amounts in their income.

Are there restrictions?

As with most types of deductions, there are some additional factors and restrictions. Talk to your tax professional or contact DS&B if you are self-employed and want to look at strategies to manage/benefit from changes in the health care insurance marketplace.


For More Information

Please contact your DS&B representative or email to be connected with a certified professional.


Disclaimer: All content provided in this article is for informational purposes only, and is subject to change. Contact a DS+B professional before using or acting on any information provided in this article