Health Insurance Deductible for Self-employed in 2010

Starting January 1, 2010, self-employed individuals may deduct the cost of health insurance premiums paid for the taxpayer and his or her immediate family as an expense when computing self-employment taxes.  Under the old law, health insurance costs could be deducted as an expense for purposes of income taxes but not self-employment.

Because health insurance premiums have increased significantly, the savings in being able to deduct the premium costs against self-employment and income should be significant; making this a nice tax break for the self employed.