Self-Employed Health Insurance Deduction Calculator 2026
Calculate your allowable self-employed health insurance deduction under IRS Publication 535. Covers health, dental, and long-term care premiums — limited to your Schedule C net profit.
How the Self-Employed Health Insurance Deduction Works
Self-employed individuals who file Schedule C (or are partners in a partnership or S-corp shareholders owning more than 2%) may deduct 100% of health, dental, vision, and qualified long-term care insurance premiums paid for themselves, spouses, and dependents. This is an "above-the-line" deduction — it reduces AGI directly on Form 1040, Schedule 1 (Part II, Line 17) — not an itemized deduction. This means it benefits you even if you take the standard deduction. Source: IRS Publication 535, Chapter 6. Last updated: May 2026.
2026 Deduction Rules and Limits
| Premium Type | Deductible? | Cap |
|---|---|---|
| Health insurance (medical) | Yes — 100% | Net SE profit |
| Dental / vision | Yes — 100% | Net SE profit |
| LTC insurance (age 40–50) | Yes — up to age limit | $890/person (2026) |
| LTC insurance (age 51–60) | Yes — up to age limit | $1,790/person (2026) |
| LTC insurance (age 61–70) | Yes — up to age limit | $4,770/person (2026) |
| LTC insurance (age 71+) | Yes — up to age limit | $5,960/person (2026) |
Who Qualifies and Common Disqualifiers
You qualify for the SE health insurance deduction if you are self-employed and not eligible for coverage under an employer-sponsored plan (your own or a spouse's). "Eligible" means you were offered subsidized coverage — even if you declined it. You cannot claim this deduction for any month in which you were eligible for employer-sponsored coverage. Additionally, the deduction is limited to your net Schedule C profit. The Self-Employment (SE) tax deduction (half of SE tax) is computed first and reduces the profit ceiling further. If premiums exceed your profit, the excess may qualify as an itemized medical expense if total medical expenses exceed 7.5% of AGI on Schedule A. Always verify your specific situation with a CPA or enrolled agent before filing.