Are Health Insurance Premiums Tax Deductible?

Gregory Gorbachev- Founder & Principal Broker
Jan 27
2 min read

When it comes to managing health insurance costs, many people wonder if premiums are tax deductible. The answer depends on your personal situation, including whether you’re self-employed, itemizing deductions, or paying for your insurance through an employer-sponsored plan.

Self-Employed Individuals

If you’re self-employed, the good news is that health insurance premiums for you, your spouse, and your dependents may be fully deductible. This deduction applies even if you don’t itemize your taxes, as long as you’re not eligible for an employer-sponsored plan through another job. Keep in mind, however, that the deduction cannot exceed your self-employment income for the year.

Itemizing Deductions

For those who itemize deductions on their tax return, health insurance premiums might also qualify. However, these expenses are grouped under medical and dental expenses, and only the portion that exceeds 7.5% of your adjusted gross income (AGI) is deductible. This means you’ll need significant medical expenses to take advantage of this deduction.

Employer-Sponsored Plans

If you have insurance through an employer, your premiums are often paid with pre-tax dollars, which means they’re already lowering your taxable income. While this setup offers tax savings, it typically means you can’t deduct those premiums again when filing your taxes.

Disclaimers

Tax laws are complex and can change over time. This article provides general information and should not be considered tax or legal advice.
Individual circumstances can vary significantly. For personalized advice, consult a qualified tax professional or accountant.
State tax rules may differ from federal laws, so be sure to check your local regulations.

Why Seek Professional Guidance?

Navigating tax laws can be tricky, and health insurance deductions are no exception. To ensure you’re maximizing your savings and staying compliant, consider consulting a tax professional or working with a health insurance expert who understands the financial aspects of coverage.

At Family Care of America, we’re here to help you make informed decisions about your health insurance. Whether you’re self-employed or looking for individual coverage, our licensed professionals can guide you through the options and connect you with plans that fit your needs—and your budget.