Self-Employed Health Insurance Deduction: Are you eligible?

If you’re self-employed and paying your own health insurance, you may be eligible for a large tax deduction. Those who can claim the deduction include:

• Small businesses, sole proprietorships, qualified joint ventures or farmers reporting income on Schedule C, Schedule C-EZ or Schedule F.
• Partners with self-employment earnings reported on Schedule K-1.
• Shareholders who were paid wages reported on Form W-2 and who own more than two percent of the outstanding stock of an S corporation.
• Taxpayers who used an optional method to figure net earnings from self-employment on Schedule SE.

Keep in mind that the deduction is not available if you’re eligible to participate in an employer-subsidized health plan maintained by your employer or your spouse’s employer.