Self-employed individuals, including partners and S-corporation employees, can deduct 100% of their health insurance premiums above the line. This tax benefit reduces taxable income while encouraging health coverage. Dr. Friday explains how this deduction could save thousands annually and emphasizes the importance of understanding its application for tax savings.
Transcript:
G’day. I’m Dr. Friday, president of Dr. Friday’s Tax and Financial Firm. To get more info, go to www.drfriday.com. This is a one-minute moment.
If you’re self-employed, you may deduct 100% of your health insurance premiums above the line. And this could also go for individuals that are part of partnerships, limited liabilities, or employees’ share of an S-corporation. These are all considered self-employed for the purpose of tax law. So this could be a great thing if you are paying $4,000 or $5,000 a year in premiums, and this is an above-the-line tax deduction. This is a way of putting more money in your pocket while also making sure that you have health insurance. You need help? Just call our firm. The easiest way to do it is to pick up the phone, 615-367-0819.
You can catch the Dr. Friday Call-In Show live every Saturday afternoon from 2 to 3 p.m. right here on 99.7 WTN.