John M. Hoffman & Associates CPAs

Frequently Asked Tax Questions

Health, Long Term Care and Medicare Insurance Premiums

Health Insurance Premiums are tax deductible in one of three ways:

As an “above the line deduction” for self employed individuals or owners of “S” corporations.

If you are not an employee but self employed instead, this deduction is not a bad alternative. It is above the line and reduces your adjusted gross income and all those bad numbers that nickel and dime you throughout the tax code. Nickel and dime should be replaced with Lincoln and Hamilton as we are talking dollars and not cents.

A similar deduction is available for partners in partnerships and employed shareholders of "S" corporations.