The Self-Employed Health Insurance Deduction is a tax benefit conceived for self-employed individuals who cover their health insurance costs and those of their families. The self-employed individuals who qualify for this benefit can deduct 100% of their health insurance premiums, including long-term care and dental insurance. It is not a business deduction; rather, it is a personal deduction designed exclusively for self-employed persons.
Qualification Criteria for the Self-Employed Health Insurance Deduction: To qualify for the deduction, the individual must not have access to any other health insurance coverage. The individual must have business income to be eligible for the deduction. This income should come from a single business. If the business fails to generate a profit, the individual may not be able to claim the deduction.