The Wall Street Journal featured a helpful article on the health insurance premium costs that can be deducted by the self-employed: sole proprietors, partnership partners and even LLC members. Read the full article here.
Unlike W-2 wage earners, the self-employed can deduct health insurance premiums and long-term-care premiums right on the front page of their 1040, reducing the all-important “Adjusted Gross Income” figure. A lower Adjusted Gross Income can lead to a lower tax bracket and lower chances of losing the child tax credit and other valuable credits.
As always, just keep very detailed records and discuss your situation with your trusted tax professional.
Deb Howard Greenleaf, EA, CEO and Principal, of Greenleaf Accounting Services provides virtual accounting and bookkeeping services and specializes in financial management to consultants, coaches, solo professionals, and other small business owners across the US. Deb is an Enrolled Agent (EA)—an IRS-licensed tax professional—and specializes in small businesses and entrepreneurs filing Schedule C or as an LLC. As an Advanced Certified QuickBooks ProAdvisor, Deb spends her day in QuickBooks Online and specializes in providing QBO support.