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.
Frequently Asked Questions
Can self-employed people deduct health insurance premiums?
Yes. Self-employed individuals (sole proprietors, partners, S-corp shareholders >2%) may deduct 100% of health, dental, and vision insurance premiums paid for themselves, their spouse, and dependents — as an above-the-line deduction on Form 1040. The deduction is limited to net self-employment profit. Source: IRS Publication 535.
Is the SE health insurance deduction limited by my income?
Yes. The deduction cannot exceed your net Schedule C profit (after deducting the SE tax deduction). If your health premiums exceed your net profit, you can only deduct up to net profit. The excess premiums may qualify as an itemized medical expense deduction if they exceed 7.5% of AGI.
Are long-term care insurance premiums deductible for self-employed?
Yes, up to age-based IRS limits. For 2026: age 41–50: $890; age 51–60: $1,790; age 61–70: $4,770; age 71+: $5,960. These are per-person limits. LTC premiums above these limits may qualify as an itemized medical deduction if total medical expenses exceed 7.5% of AGI. Source: IRS Revenue Procedure 2025-13.
Does this deduction reduce self-employment tax?
No. The self-employed health insurance deduction reduces your income tax (federal and state) but does NOT reduce net earnings subject to self-employment (SE) tax. Only business expense deductions on Schedule C reduce SE tax. This is an adjustment to income on Form 1040, Schedule 1.
What if I'm eligible for coverage through a spouse's employer plan?
If you are eligible (not just enrolled) for subsidized employer-sponsored health coverage through a spouse's employer plan, you generally cannot claim the self-employed health insurance deduction. Eligibility — not enrollment — is the disqualifying factor per IRS rules.