Who may qualify
IRS Form 7206 is used to determine the self-employed health insurance deduction. Eligible amounts can include medical, dental, vision and qualified long-term care insurance for you, your spouse and qualifying dependents.
The plan generally must be established under the trade or business, and the deduction cannot exceed the earned income from that business. Partners and more-than-2% S corporation shareholders have additional rules.
The employer-plan restriction
The deduction is generally unavailable for a month when you were eligible to participate in a subsidized health plan through your employer, your spouse's employer or certain dependent coverage. Eligibility can matter even if you did not enroll.
Do not assume a Marketplace premium, a Gabriel Care membership and a medical expense all receive the same tax treatment. They are different products and expenses with different rules.
Records worth keeping
Keep a clean annual file so your tax professional can determine what belongs on Form 7206 and what does not.
- Monthly insurance invoices and proof of payment
- Marketplace Form 1095-A and premium-tax-credit records
- Entity and payroll records if you operate an S corporation
- Documentation of employer-plan eligibility for you and your spouse
Common questions
What people ask next.
Is the deduction the same as an itemized medical expense deduction?
No. The self-employed health insurance deduction is an adjustment to income with its own eligibility rules. Do not double-count the same premium elsewhere.
Can I deduct premiums if my spouse has employer coverage available?
Possibly not for months when you were eligible for subsidized coverage through your spouse's employer. Review the exact facts with a tax professional.
Is the Gabriel Care membership fee automatically deductible?
No. Gabriel Care is not insurance, and this page does not characterize its membership fee as a deductible insurance premium.