There are options related to self-employed individuals and how they deduct their health insurance premiums. A few self-employed individuals have spouses that have insurance through their workplace which is probably already pre-tax. Others, who don’t have that option, take out policies for themselves and their family. If this is you, make sure you are getting the most benefit for the premiums you are paying.
You may be able to deduct the amount you paid for health insurance for yourself, your spouse, and your dependents. There are several rules that apply so contact your CPA today if you are unsure of this valuable deduction.
For those self-employed individuals where the spouse is a legitimate employee of the business, there are options to not only get a deduction for federal tax purposes, but also for social security and medicare tax purposes. With a BASE 105 plan established in your business’ name, you can deduct the medical benefits paid to your spouse as a business expense. Contact us today about this plan and if it would benefit your business.