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Originally Posted by cupcake Employer does not provide health insurance due to limited work hours. I also work as a contractor on the side to supplement income. Can I deduct full cost of ACA open market health insurance on line 29 of the 1040 or am I limited to the maximum of my income as a self employed contractor? |
yes; your insurance premiums are fully deductible. The Self-Employed Health Insurance Tax Deduction allows you to reduce your agi by the amount your household spends on health insurance premiums. Dental premiums are also included in the tax deduction for self-employed. Also Itemized medical deductions allow you to deduct most health care costs that exceed 10% of your adjusted gross incomesince you?re self-employed, most of the healthcare provisions in the ACA apply to youThe biggest part of the ACA that?s unique to the self-employed is that health insurance premiums for you and your dependents are fully deductible on your tax return
you?ll find on Form 1040, Line 29 ? allows self-employed people to reduce your AGI by the amount you pay in health insurance premiums during a given year. You?ll find the deduction on your personal income tax form, and you can file for it if you were self-employed and showed a profit for the year. If you?re also eligible for a premium tax credit (premium subsidy), there are two methods that the IRS will let you use to determine your deduction and your tax credit.