Have you known about self employed health insurance deduction? There are so many topics about health insurance. Talking about health insurance deduction is so interesting. As we know that health insurance requires premiums, but for some conditions, you can get health insurance premium deduction. Find the complete information about self employed insurance deduction below.
As mentioned before, people with some conditions can get health insurance deduction. For example is self employed. Self employed can get health insurance deduction. But, they should be qualified first, and then they can apply for health insurance deduction.
Many self employed people may not know about health insurance deduction. Actually, it is a type of largest deduction because you can get premium deduction for your health insurance. Not only that, it is not only premium deduction for yourself, but it can be used for your spouse or dependent. So, you have to use this special deduction if you are a self employed.
Although it is special deduction, but it doesn’t mean that health insurance deduction is business deduction. It is special personal deduction for self-employed and it can be applied only to your state, federal and local incomes, not to your self employment taxes. Before applying for health insurance deduction, you have to make sure that you can fulfill some requirements, such as below:
- You Have No Other Health Insurance Coverage
If you want to get health insurance deduction, make sure you have no other health insurance coverage. You will not get health insurance deduction if you participate other health insurance maintained by your employer or the employer of your spouse.
- You have Business Income
Self Employed Health insurance deduction can be got if you have business income. If your business result no money or loss, you will not receive health insurance deduction. There is still other requirement for self employed. For example is how many business you conduct. If you have more than one business, you can’t combine the income of all your business. The income is just income from one business that becomes health insurance sponsor.
How Much is Health Insurance Deduction?
Now, you have known some requirement for getting self employed health insurance deduction. Some of you may be curious about how much the deduction of health insurance for self employed. Actually, the deduction influenced by your business and age. If your business has employees and you pay for health insurance premiums for your employees, you will get deduction that is different from other self employed. Not only that, the deduction influenced by age. Every self employed will get different deduction depend on their age, such as below:
- $390 for age 40 and younger
- $710 for age 41 to 50
- $1,460 for age 51 to 60
- $3900 for age 61 to 70
- $4,870 for over age 70
Well, those are some information about health insurance deduction for self employed. Whenever you need reference about self employed health insurance deduction, you can use this information. Hopefully, some information about self employed health insurance deduction that has been explained will be useful for you.