Q. How much can I deduct for my health insurance?
A. A self-employed person with a net profit reported on Schedule C may deduct 100 percent of the amount paid for medical and dental insurance and qualified long-term care insurance paid for you, your spouse and your dependents on line 29 of Form 1040. The insurance plan must be established under your business.
The deduction is limited to your net profit on the Schedule C. If all or part of the health insurance amount is not allowed in this section, the balance may be deducted on Schedule A under medical expenses subject to the 7.5% percent minimum.
No deduction is allowed for any month that you were eligible to participate in any subsidized health plan maintained by your or your spouse¹s employer.
Qualified long-term care insurance premiums may be included in this health insurance deduction up to the following amounts for 2008:
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