Health insurance premium deductible
We pay for our family health insurance out of pocket because my employer does not offer health insurance. My wife has 1099 self-employment income this year. Can we deduct our health insurance premiums on our joint tax return?
Best Answer
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Probably yes. You will want to look at the rules for the self-employed health insurance deduction which is taken on line 17 of Schedule 1. You cannot deduct more than the profit from your business there. You can also deduct the rest as a medical expense if you itemize deductions, but only medical expenses in excess of 7.5% of your AGI are deductible on Schedule A.
If you are purchasing insurance through the ACA Marketplace and receiving the Premium Tax Credit, the SEHI deduction is only for the net out-of-pocket cost.
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