Health Insurance Professional’s Comment

Great article last month on the self-employed health insurance deduction.

However, I am not sure whether you were aware of this: if a sole proprietor or one-person company buys an individual medical policy, on or off the marketplace, the fine print in the insurance carrier’s application says that this is not an employer-sponsored policy and that owner will not deduct the premiums on their tax return.

Our Take

Thank you for writing, and you are describing something real. That language is on the applications. But it is an insurance rule about who sponsors the coverage, not a tax rule about who may deduct the premiums.

You Will Like this Answer

Let’s start with the self-employed (sole proprietors and partners). We’ll get to S corporation owners later.

The tax code allows a self-employed individual to deduct premiums paid for medical insurance covering the taxpayer, spouse, dependents, and children under age 27, so long as ... Log in to view full article.