Health Insurance Tax Deductable?
I was just trying to do my taxes on Turbo Tax and it said "new, this year", if you are self employed your health insurance premiums for yourself and your family are tax deductable. Is this true? (Not that I'm doubting Turbo Tax, I just am wondering if I understand correctly.) Wow. That would be really great.
Re:Health Insurance Tax Deductable?
Well, its not particularly new this year...however this is the first year where they were 100% deductible. Only a percentage was deductible in the past. They are deductible on page 1 of the 1040, on line 29. They are only deductible to the extent of your self-employment income, although any excess will go to Schedule A. There are a few other restrictions on the deduction, mostly applicable if you or a spouse had W-2 income.
The bad news is that they are not a Schedule C deduction, so you still pay self-employment tax on the income it offsets.
Re:Health Insurance Tax Deductable?
OMG, I'm going to run out and get health insurance!