Health Insurance Tax Deduction

For self employed people who are making a profit for the particular tax year, they can deduct the 100% of the self employed health insurance premiums paid for oneself, the spouse and also others dependent on the person. One can also include the tax deductible portion of the self employed health insurance premiums paid for tax qualified long term care policies. To the extent that they pay back for incurred long term care expenses, benefits paid by an indemnity type contract are tax free while benefits paid by a per diem contract are tax free up to $250 per day.

Maximum tax deductible premium for the people for the age under 41 is $280. For people in the age group of 41-50, the premium is 530$ while it is $1060 for people in the age group of 51-60. It is $2,830 for the age group of 61-70 while it is 3,350$ for people above 70. Your self employed health insurance tax deductions should not exceed the net profit from the business from which the self employed health insurance premiums are paid. One should not take the special 100% tax deduction for self employed health insurance premiums in any month in which the person is eligible to participate in any subsidized health plan maintained by the person’s employer or employer of the person’s spouse.