Self Employed Health Insurance - Tips on Finding the Best Coverage
Do you know that as a self-employed professional you can take advantage of health insurance deductions for self-employed business owners? It is possible to deduct the premium amount towards health insurance self employed from your gross income in order to reduce the taxable income.
The deductions can be made at the end of the tax year and include those for self, spouse, dependents, and children below 27 years of age. It is also possible to deduct premiums made towards Medicare and long-term health insurance plans for self employed if you fulfill certain conditions.
In order to qualify for these deductions, you should seek self employed health insurance quotes according to the status and profits of your business. For instance, for sole proprietors or single LLC owner, you can qualify if your business saw a net profit on Schedule C or Schedule C-EZ. Alternatively, you can be a partner with annual net earnings reported on Schedule K-1, or use an optional method to deduce the net earnings on Schedule SE when self-employed, or you are in receipt of wages from an S corporation where you hold more than 2% share.
To get the benefit of the tax deduction, deduct the premiums of the health insurance self employed from your gross income on page 1 of the personal tax return. Enter the exact amount paid towards premiums for self and other dependents. Then use the Worksheet 6-A. Self Employed Health Insurance Deduction Worksheet. However, if you opted for a low medical insurance from the market place, you will need to use another worksheet.
You will need to fill the correct total premium amount that you paid for insurance under your business. For a qualified long-term care plan, specify the amount that you paid as stipulated by the age schedule. For instance, the maximum payment amount is $390 for people aged 40 years or below, $730 for 41 to 50, $1,460 for 51 to 60, $3,900 for 61 to 70, and $4,870 for 71 years and above. Also, submit details of the profit made in your business. Remember, no profit would mean, no deduction. In addition, you can also get deductions for long-term car insurance policy, too. You may find all this number crunching a bit difficult and may need to seek services of an expert that can help you fill up the forms as per your specific health insurance plans for self employed.