According to the IRS, you may qualify for this deduction if one of the following applies to you:
- You had a net profit from self-employment.
- You had self-employment earnings as a partner.
- You used an optional method to figure your net earnings from self-employment.
- You were paid wages reported on Form W-2, Wage and Tax Statement, as a shareholder who owns more than two percent of the stock of an S-corporation.
You can only claim a premium write-off for the months when you and your family were not covered by an employer’s health plan. In addition, your deductions can’t exceed the total amount of income you receive from your business.
Long-Term Care Premium Deductions
There is a set limit on how much you can deduct for your long-term care insurance premiums. In 2014, the total deduction was as follows:
- Age 40 and younger: $370
- Age 41-50: $700
- Age 51-60: $1,400
- Age 61-70: $3,720
- Age 71 and older: $4,660
Save Money with HealthMarkets
At HealthMarkets, we want to help you find ways to save money on your health insurance expenses—whether you’re your own boss or not. So if you need to save money with self-employed insurance tax deductions or want to discover a policy that suits your needs, we can help.
Disclaimer: The information in this article is not offered as legal or tax advice. We suggest that you seek the advice of your tax advisor, attorney, and/or financial planner to make certain you obtain the tax deduction(s) you are entitled to.
All material is presented solely as educational information.
TurboTax: https://turbotax.intuit.com/tax-tools/tax-tips/Self-Employment-Taxes/Deducting-Health-Insurance-Premiums-If-You-re-Self-Employed/INF12128.html | Main St.: https://www.mainstreet.com/article/whats-new-federal-income-taxes-2014 | IRS: http://www.irs.gov/uac/Newsroom/Dont-Miss-the-Health-Insurance-Deduction-if-Youre-Self-Employed