Can I Deduct My Health Insurance Premiums?

Self-employed individuals can deduct 100% of health insurance premiums for themselves, their spouse, and dependents as an above-the-line deduction — meaning you don't need to itemize. This deduction reduces your adjusted gross income but not your self-employment tax. You cannot take this deduction if you were eligible to enroll in an employer's subsidized plan through your spouse. Employees who pay premiums through payroll are usually already getting a tax break via pre-tax dollars. If you itemize, you may also be able to deduct medical expenses exceeding 7.5% of your AGI.