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Business Tax5 min readMar 17, 2026
Health Insurance Deductions for the Self-Employed
If you're self-employed and pay for your own health insurance, you may be able to deduct 100% of the premiums. Here's everything you need to know.
Health Insurance Deductions for the Self-Employed
The Self-Employed Health Insurance Deduction
Self-employed individuals may deduct 100% of health, dental, and vision insurance premiums for themselves, their spouse, and their dependents.
This is an above-the-line deduction (reduces AGI) — available even without itemizing.
Who Qualifies?
- Sole proprietors
- Partners in a partnership (own more than 2%)
- S-corporation shareholders owning more than 2%
- LLC members taxed as sole proprietors or partnerships
Key Limitation
You cannot take this deduction in any month you (or your spouse) were eligible to participate in an employer-sponsored health plan.
What's Included
- Medical, dental, and vision insurance premiums
- Medicare Part B, Part C, and Part D premiums
- Long-term care insurance premiums (within IRS limits)
What's NOT Included
- Actual medical expenses (separate deduction)
- Health insurance for employees (deductible as a business expense)
S-Corp Shareholders
The S-Corp must add health insurance premiums to the shareholder's W-2 as wages. The shareholder then takes the deduction on their personal return.
Self-employed and paying health insurance? Make sure you're taking this valuable deduction.