What Is the Health Insurance Deduction for Self-Employed?

Self-employed individuals can deduct 100% of health insurance premiums paid for themselves, their spouse, and dependents as an above-the-line deduction — no itemizing required. This deduction reduces your AGI but not your self-employment tax. You can't take this deduction if you were eligible to participate in an employer-sponsored health plan (like a spouse's plan) for any month. Long-term care insurance premiums (subject to age-based limits) also qualify. This is one of the most valuable perks of self-employment.