Self-employed individuals can deduct 100% of health insurance premiums paid for themselves, spouse, and dependents — above the line, reducing AGI directly.
TurboTax Self-Employed guides you through every deduction including health insurance premiums — step by step.
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Who qualifies: Sole proprietors, S-Corp shareholders owning 2%+, partners in partnerships, and single-member LLC owners who are self-employed for the year.
What's deductible: Medical, dental, and vision insurance premiums for you, your spouse, dependents, and children under 27. Also: Medicare Part B, C, and D premiums.
The limit: Your deduction cannot exceed your net self-employment income. If you had $30,000 in profit and paid $35,000 in premiums, you can only deduct $30,000.
Employer eligibility rule: If you were eligible to participate in a subsidized employer plan at any point during the month (even your spouse's employer plan), you CANNOT claim the deduction for that month.
Long-term care: LTC premiums are deductible up to age-based limits ($470–$5,880 in 2026). This calculator uses the full amount — reduce manually if over the limit.
Use our SE Tax Calculator to see how this deduction reduces your overall tax bill.