Home > Personal Finance Center  > Preparing for Taxes > Preparing for Taxes - Self-Employed? Don't Miss This Tax Break

Preparing for Taxes - Self-Employed? Don't Miss This Tax Break

Preparing for Taxes - Self-Employed? Don't Miss This Tax Break

If you purchase health insurance and are self-employed, make sure you take advantage of a relatively obscure tax break. Any premiums paid for health insurance can be claimed as a deduction against Social Security and Medicare taxes. The result is a 15% savings on those costs. If you pay $800 per month on health insurance, for example, the deduction could cut your self-employment taxes by over $1,300.

The deduction is tricky to find. On Form SE, write in the deduction on Line 3 on the empty dotted line, noting “health insurance premiums” and the amount you paid for health insurance. That amount is deducted from your self-employment taxes. If you’re in doubt, talk to your accountant – but don’t miss the chance to cut your overall tax liability.

What is New

Stock Market

Stocks headlines
Index Last Change
Dow 17079.08 -7.55
Nasdaq 4470.44 -3.26
S&P 500 1987.12 0.11
NYSE 11031.12 7.22
AMEX 2795.78 -5.99
Input stock ticker 
Or company name