By Wiss Associate
For myriad professionals, becoming an entrepreneur can be a dream come true. Fortunately, health insurance deductions can make maintaining that dream much easier. The Self-Employed Health Insurance Tax Deduction within the Affordable Care Act can assist in lowering your adjust gross income by your payment quantity in premiums on dental, medical, and qualified long-term care insurance for you and your loved ones. For self-employers unable to access a partner’s insurance plan, taking on this career path means selecting policies within the individual health insurance marketplace. However, due to the ACA’s premium tax credits, countless entrepreneurs are currently receiving help with paying their health coverages.
If you’re presently self-employed, you may qualify for this removal if the following pertains to you:
- Your net profit is from your entrepreneurship
- You have earnings as a partner described to you on Schedule K-1 (Form 1065), Partner’s Share of Income, Deductions, Credits, etc.
- You utilized a non-compulsory technique to outline your net earnings from self-employment
- You were previously handed earnings on Form W-2, Wage and Tax Statement
Keep in mind—beginning this year, every self-employer is limited to subtracting medical expenses that are over 10 percent of their AGI. This level could be difficult to reach if you’re not currently dealing with a major condition or injury. For more information, reference the IRS website at IRS.gov.
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For more information on this topic, please reach out to Wiss’ Tax Departmentat 973.994.9400 or at hello@wiss.visioncreativegroup.com.