I have a my own LLC and working as self employee for this company. I am working on 1099 for this company. Since there is only 2 employee (including my spouse), I can't take health insurance from my business. In short I don't have a health insurance from my business.

I understand that on W2 if my medical expenses + premium goes beyond 7.5% of my AGI and if I do itemize tax filing, then only I can deduct that.

But being on 1099 with my company can I deduct my monthly insurance in my tax?

Note: We are family of 4 member and gross income is less than 94K. I took the insurance from Healthcare.gov (Obama care). I will get some Obama care subsidies at the year end. I also understand that I am talking the deduction about only the premium which I paid, but not on the subsidies which I will get.

Thanks in advance.

  • 1
    Just a comment though - be careful about all that "1099" thing. The IRS may (and sometimes do) audit employers who claim their employees as "contractors". If that happens (or if you yourself are audited and the auditor decides that you're a de-facto employee) - you will not be allowed the deduction, and will not get a "retroactive raise" from your employer.
    – littleadv
    Commented Jun 25, 2014 at 5:51

1 Answer 1


Yes, you can. See the instructions for line 29 of form 1040. Self employed health insurance premiums are an "above the line" deduction.

  • 2
    To supplement littleadv's answer, self-employed people over 65 whose income is large enough that they have to pay premiums for Medicare coverage can deduct these premiums on line 29 as well. Commented Jun 25, 2014 at 10:18

You must log in to answer this question.

Not the answer you're looking for? Browse other questions tagged .