Self-employed individuals are allowed to deduct 100% of their health insurance expenses from their annual tax returns. While that deduction cannot exceed the person’s net earnings from self-employment, it can include expenses for a spouse and any dependents. The recent health care legislation, The Patient Protection and Affordable Care Act, added a new perk. Children of the self-employed taxpayer up to the age of 27—regardless of whether they qualify as dependents—can now be included in this deduction. The IRS definition of “child” in this case can include biological children, legally adopted children, stepchildren, and eligible foster children.
Are you self-employed and wondering how to make the most of the tax deductions available to you for health insurance and other expenses? Get in touch with Taxation Solutions, Inc. today. We’re a knowledgeable and experienced tax help firm offering a variety of tax resolution services in and around St. Louis. In our 40 years in the business, we’ve seen tax codes change, and we strive to stay up to date and informed regarding new laws that affect our clients. We’ll be happy to answer your questions about health insurance deductions and much more.