Self-Employed Health Insurance Deduction Calculator
Calculate your IRC §162(l) deduction for 2025. See exactly how much of your health insurance premiums you can deduct — and your estimated federal tax savings.
Employer Plan Disqualification
You cannot claim this deduction for any month in which you or your spouse were eligible to participate in an employer-subsidized health plan — even if you didn't enroll. This includes coverage available through your spouse's employer.
Your Information
Include premiums for yourself, spouse, and dependents (medical, dental, vision)
From Schedule C (after expenses, before this deduction)
Used to estimate your marginal tax bracket
Your Results
Eligible Deduction Amount
$0
Estimated Federal Tax Savings
$0
Key Rules to Know
- •This is an above-the-line deduction (Schedule 1, Line 17) — it reduces your AGI regardless of whether you itemize.
- •The deduction does not reduce your self-employment tax — only your income tax.
- •Medicare Part B, C, and D premiums paid by self-employed individuals can qualify.
- •Long-term care insurance premiums may qualify, subject to age-based annual limits.
- •You cannot claim this deduction for months when you or your spouse were eligible to participate in an employer-subsidized health plan.
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Frequently Asked Questions
Who can claim the self-employed health insurance deduction?
Self-employed individuals — sole proprietors, partners in a partnership, S-corporation shareholders owning more than 2%, and LLC members taxed as sole proprietors or partnerships — can claim this deduction on Schedule 1, Line 17. You must have net profit from self-employment that equals or exceeds your premiums. W-2 employees cannot claim this deduction.
Can I deduct health insurance if my spouse has employer coverage available?
No. You cannot claim the self-employed health insurance deduction for any month in which you were eligible to participate in a health plan subsidized by an employer — including your spouse's employer plan. If your spouse's employer offers family coverage, you may be disqualified for those months even if you didn't actually enroll in the plan.
How is the self-employed health insurance deduction calculated?
The deduction equals the lesser of: (1) the total premiums you paid for health, dental, and vision insurance for yourself, your spouse, and dependents, or (2) your net self-employment income minus the deductible portion of self-employment tax (half of your SE tax). The deduction cannot exceed your net profit from the self-employment activity.
Does this deduction reduce self-employment tax?
No. The self-employed health insurance deduction reduces your adjusted gross income (AGI) for income tax purposes, but it does not reduce your net earnings from self-employment for self-employment tax purposes. It is an above-the-line deduction claimed on Schedule 1, not on Schedule C.
What types of insurance premiums qualify for this deduction?
Qualifying premiums include medical, dental, and vision insurance for yourself, your spouse, and dependents. Long-term care insurance premiums also qualify, subject to age-based limits. Premiums paid through a Health Reimbursement Arrangement (HRA) or with pre-tax dollars generally do not qualify. Medicare Part B, C, and D premiums paid by self-employed individuals can also count.