If you are self-employed, the IRS wants you to know about a tax deduction generally available to people who are self-employed.

The deduction is for medical, dental or long-term care insurance premiums that self-employed people often pay for themselves, their spouse and their dependents. The insurance can also cover your child who was under age 27 at the end of 2012, even if the child was not your dependent.

You may be able to take this deduction if one of the following applies to you:

  • You had a net profit from self-employment. You would report this on a Schedule C, Profit or Loss From Business, Schedule C-EZ, Net Profit From Business, or Schedule F, Profit or Loss From Farming.
  • You had self-employment earnings as a partner reported to you on Schedule K-1 (Form 1065), Partner's Share of Income, Deductions, Credits, etc.
  • You used an optional method to figure your net earnings from self-employment on Schedule SE, Self-Employment Tax.
  • You were paid wages reported on Form W-2, Wage and Tax Statement, as a shareholder who owns more than two percent of the outstanding stock of an S corporation.
  • There are also some rules that apply to how the insurance plan is established. Follow these guidelines to make sure the plan qualifies:
  • If you're self-employed and file Schedule C, C-EZ, or F, the policy can be in your name or in your business' name.
  • If you're a partner, the policy can be in your name or the partnership's name and either of you can pay the premiums. If the policy is in your name and you pay the premiums, the partnership must reimburse you and include the premiums as income on your Schedule K-1.
  • If you're an S corporation shareholder, the policy can be in your name or the S corporation's name and either of you can pay the premiums. If the policy is in your name and you pay the premiums, the S corporation must reimburse you and include the premiums as wage income on your Form W-2.

For more information, see Publication 535, Business Expenses. It's available at IRS.gov or by calling 800-TAX-FORM (800-829-3676).

As you complete the federal interview, TaxACT will complete the appropriate schedule to deduct your health insurance premiums. For more information about how to enter your deduction information in TaxACT, review this FAQ.

Start your return or sign in to your return now.

Additional IRS Resources:

January 2015
S M T W T F S
1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31

Upcoming Tax Dates

January 1 Everyone
Federal Holiday (New Year's Day) - Details

January 12Employees who work for tips
If you received $20 or more in tips during December, report them to your employer - Details

January 12Communications and air transportation taxes under the alternative method.
Deposit the tax included in amounts billed or tickets sold during the first 15 days of December 2014.

January 14Regular method taxes
Deposit the tax for the last 16 days of December 2014.

January 15Individuals
Make a payment of your estimated tax for 2014 if you did not pay your income tax for the year through withholding (or did not pay in enough tax that way). Use Form 1040-ES - Details

January 15 Farmers & fishermen
Pay your estimated tax for 2014 using Form 1040-ES - Details

January 15 Social security, Medicare, and withheld income tax
If the monthly deposit rule applies, deposit the tax for payments in December 2014

January 15 Nonpayroll withholding.
If the monthly deposit rule applies, deposit the tax for payments in December 2014.

January 20 Everyone
Federal Holiday (Birthday of Martin Luther King, Jr./Inauguration Day) - Details

January 27 Communications and air transportation taxes under the alternative method.
Deposit the tax included in amounts billed or tickets sold during the last 16 days of December 2014.

January 29 — Regular method taxes
Deposit the tax for the first 15 days of January.

View More Tax Dates