Can I deduct my health insurance premiums as a sole proprietor?
Yes. The self-employed health insurance deduction lets you deduct premiums for medical, dental, and qualifying long-term-care coverage for yourself, your spouse, and dependents. It's an above-the-line deduction, so you get it even if you don't itemize, and it directly lowers your adjusted gross income. The key limits: you can't take it for any month you were eligible for coverage through your own or a spouse's employer, and the deduction can't exceed your business's net profit. If you also claim an ACA premium tax credit, the two interact and require a coordinated calculation. The IRS explains the rules in Publication 535. This deduction is one of the most valuable perks of being your own boss.
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