Where do I enter my health insurance deduction for self-employment?
If you are self-employed and pay for health insurance, you may be eligible to claim a deduction for those premiums. The deduction is reported on Schedule 1 (Form 1040), line 17, labeled "Self-Employed Health Insurance Deduction."
How to Claim the Deduction
- Use Form 7206 if you cannot use the worksheet in the Form 1040 instructions. This form replaces the old Self-Employed Health Insurance Deduction Worksheet from Publication 535.
- Use the Self-Employed Health Insurance Deduction Worksheet (in the Instructions for Schedule 1, Form 1040) if you meet the eligibility criteria and do not need to use Form 7206.
- The deduction is available only if you are self-employed and not covered by an employer-sponsored plan. It is not available if you are an employee with employer-provided coverage.
Where to Enter the Information
You can enter your self-employed health insurance deduction in the following ways:
- Within your tax software, navigate to the Federal Income section, then select Business Income or Loss (Schedule C, F, or K-1). Look for the option labeled Self-Employed Health Insurance and follow the prompts.
- Alternatively, in the software, go to the Federal menu, click on Income, then select Show More next to Business Income or Loss. Then click 'Start' or 'Edit' next to 'Self-Employed Health Insurance' and enter your information.
Important Notes
- The deduction is taken as an adjustment to income, meaning you do not need to itemize deductions to claim it.
- If you are not eligible to use the worksheet in the Form 1040 instructions, you must use Form 7206 to calculate your deduction.
- The deduction is limited to your net self-employment income. You cannot deduct more than your net earnings from self-employment.
Source:
Form 7206 - Self-Employed Health Insurance Deduction
Form 1040 Instructions (Schedule 1, Line 17)
Disclaimer: Always verify details with official IRS forms and instructions or consult with a tax professional. The information provided is based on retrieved context and may not reflect all current tax law changes.