Taxorly AI Tax Advisor
Answered June 4, 2026
As a self-employed individual, you can deduct health insurance premiums for yourself, your spouse, and your dependents. For 2026, you can deduct 100% of your health insurance premiums as a business expense, up to the amount of your net earnings from self-employment.
Let's say you have a net earnings from self-employment of $60,000 and you paid $10,000 in health insurance premiums for yourself and your family. You can deduct the full $10,000 as a business expense on your tax return.
To qualify for this deduction, you must have a net profit from your business, and you cannot be eligible for a group health plan through your spouse's employer or another employer. You'll report this deduction on Form 1040, and you may need to complete Form 8962 to calculate your deduction.
Try our Self-Employed Tax Deduction Calculator at taxorly.com/self-employed-deductions to see how much you can save.
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