“Without the ready-made benefits package provided by larger corporations, many self-employed Americans also must be self-insured. Thankfully, premiums for medical insurance as well as dental and long-term care insurance are deductible from your taxes. The deduction can be very large, but also saves you by preventing the ‘individual mandate’ penalty suffered by uninsured taxpayers with the Affordable Care Act known as Obamacare. While it’s uncertain what will happen with the ACA going forward, for tax year 2016 there is a penalty of $695 per adult or 2.5% of household income if you’re uninsured, whichever amount is greater.”
LTC Comment (from Stephen A. Moses, President, Center for Long-Term Care Reform):
Interesting connection with the ACA individual mandate.
5 Biggest Tax Breaks for the Self-Employed