Deducting health insurance premiums as an entrepreneur can save thousands of dollars in taxes.
Sole proprietors can deduct health insurance premiums on Schedule 1 of their individual tax return.
S corporation shareholders need to incorporate health insurance premiums in their payroll to maximize deductions.
Health insurance premiums should not be deducted on Schedule C or Schedule A.
Health insurance premiums can also be deducted with a Health Savings Account (HSA).
Where should sole proprietors deduct their health insurance premiums?
—Sole proprietors should deduct their health insurance premiums on Schedule 1 of their individual tax return.
How do S corporation shareholders deduct their health insurance premiums?
—S corporation shareholders need to incorporate their health insurance premiums in their payroll to maximize deductions.
Can health insurance premiums be deducted on Schedule C or Schedule A?
—No, health insurance premiums should not be deducted on Schedule C (for sole proprietors) or Schedule A (for itemized deductions).
Can health insurance premiums be deducted with a Health Savings Account (HSA)?
—Yes, health insurance premiums can be deducted with a Health Savings Account (HSA) if the plan is HSA eligible.
Are there any common mistakes to avoid when deducting health insurance premiums?
—Yes, it's important to avoid the mistake of not paying health insurance personally as a sole proprietor or not incorporating health insurance premiums in payroll as an S corporation shareholder.
00:00Introduction to deducting health insurance premiums as an entrepreneur.
03:32Where sole proprietors should deduct their health insurance premiums on their individual tax return.
06:28How S corporation shareholders can deduct health insurance premiums.
11:48The importance of not deducting health insurance premiums on Schedule C or Schedule A.
13:34The option to deduct health insurance premiums with a Health Savings Account (HSA).
