Health Insurance

If you are self-employed*, you may deduct 100% of your health insurance premiums as an above-the-line deduction. Whether you itemize or not, above-the-line deductions are subtracted from gross income to arrive at your AGI. The self-employed health insurance premiums deduction cannot exceed the amount of income you have earned from your business.

* Sole proprietors are self-employed. Partners in partnerships, members of limited liability companies (LLCs), and employee shareholders in S corporations may also be considered self-employed.