Is self employed health insurance tax deductible ?
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| If you are self
employed (including general partners in partnerships,
limited partners receiving guaranteed payments, and taxpayers who receive
wages from S-corporations in which they own more than 2% of the common
stock) and have a net profit for the tax year, you can deduct 100% of the
self employed health insurance premiums you paid in 2009 for yourself, your spouse, and your dependents on
Form 1040,
Line 29.
You can include the tax deductible portion of the self employed health insurance
premiums paid for tax qualified long
term care policies. Additional rules apply. |
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| Age |
Maximum Tax
Deductible Premium |
| Under 41 |
$320 |
| 41-50 |
$600 |
| 51-60 |
$1,190 |
| 61-70 |
$3,180 |
| Over 70 |
$3,980 |
Benefits paid by qualified long term care policies:
To the extent that they reimburse long term care expenses, benefits paid by
an indemnity type contract are tax free. Benefits paid by a per diem contract
are tax free up to $280 per day.
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Your self employed health insurance tax deductions cannot exceed the net profit from the business from
which the self employed health insurance premiums are paid, - less your tax deductions
on your tax return for
self employment tax and any Keogh, SEP, or SIMPLE plan contributions.
You cannot take the special
100%
tax deduction for self employed health insurance premiums in any month
in which you are eligible to participate in any subsidized health plan maintained by your
employer or your spouse's employer.
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Related tax
information about self employed health insurance |
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Tax Deductible Long Term Care Costs
Tax Deductible Medical Savings Accounts |
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IRS publications about self employed health insurance:
For further information about self employed health insurance see IRS
Publication
502, Medical and Dental Expenses. Also see
IRS Publication 17,
Your Federal Income Tax.
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Ask Julian Block your IRS and tax questions! |
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