Most self-employed taxpayers can deduct health insurance premiums, including age-based premiums for long-term care coverage. Write-offs are available whether or not you itemize, if you meet the requirements.
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If you are self-employed, you may be eligible to deduct premiums that you pay for medical, dental and qualifying long-term care insurance coverage for yourself, your spouse and your dependents.
Eligibility is determined month-by-month
You can only claim the health insurance premiums write-off for months when neither you nor your spouse were eligible to participate in an employer-subsidized health plan.
For example, if you were single and ineligible for any employer-provided health plan during the last six months of the year because you left your job and started your own business, you can claim the deduction for premiums you paid for coverage during that six-month period.
The deduction cannot exceed the earned income you collect from your business.
For example, if your self-employment activity is a sole proprietorship that generated a tax loss for the year, you’re not allowed to claim the deduction because the business didn't generate any positive earned income.
If you’re a business partner or LLC member who's treated as a partner for tax purposes, you can deduct the health insurance premiums you pay directly. If the partnership or LLC pays the premiums, you can still claim the deduction for premiums paid for your coverage by following special rules.
Partners and LLC members who are treated as partners for tax purposes are considered to be self-employed.
If your business has employees and you pay health insurance premiums for them, these amounts are deducted on the applicable tax form and line for employee benefit program expenses.
For example, if your business is a sole proprietorship, you deduct premiums paid to provide health coverage to employees on Schedule C.
Here's what you can deduct this year for long-term care insurance premiums.
| Age Range | 2024 Deduction | 2023 Deduction |
| 40 and younger | $470 | $480 |
| 41 to 50 | $880 | $890 |
| 51 to 60 | $1,760 | $1,790 |
| 61 to 70 | $4,710 | $4,770 |
| Over 70 | $5,880 | $5,960 |
If you qualify, the deduction for self-employed health insurance premiums is a valuable tax break. With the rising cost of health insurance, a tax deduction can help you pay at least a portion of the premium cost. And that will help to keep you healthy—and happy—in 2024 and beyond.
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Start for freeThe above article is intended to provide generalized financial information designed to educate a broad segment of the public; it does not give personalized tax, investment, legal, or other business and professional advice. Before taking any action, you should always seek the assistance of a professional who knows your particular situation for advice on taxes, your investments, the law, or any other business and professional matters that affect you and/or your business.
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A Form 1040 return with limited credits is one that's filed using IRS Form 1040 only (with the exception of the specific covered situations described below). Roughly 37% of taxpayers are eligible.
If you have a Form 1040 return and are claiming limited credits only, you can file for free yourself with TurboTax Free Edition, or you can file with TurboTax Live Assisted Basic or TurboTax Full Service at the listed price.
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