Health Insurance Deduction (§162(l))
Self-employed? Deduct 100% of health, dental, vision, and long-term care premiums above-the-line under IRC §162(l). See the income cap, marketplace subsidy interaction, and your effective monthly premium after tax savings.
Health Insurance Premiums
Long-Term Care Insurance
2024 LTC Deductible Limits
≤40
$470
≤50
$880
≤60
$1,760
≤70
$4,710
≤71+
$5,880
Income & Coverage
Total Premiums
$8,000
Medical + Dental + Vision + LTC
Deductible Amount
$8,000
After income cap
AGI Reduction
$8,000
Above-the-line
Tax Savings
$2,160
Federal 22% + State 5%
Your effective monthly premium after deduction
$487/mo
vs $667/mo sticker price — the deduction saves you $2,160/yr
Combined Above-the-Line AGI Reductions
Before standard or itemized deductions. ½ SE tax is an estimate based on $80,000 net SE income.
IRC §162(l) — self-employed health insurance deduction (100% of premiums). IRC §164(f) — ½ SE tax deduction. LTC limits from Rev. Proc. 2023-34. Not applicable if S-Corp owner (different rules apply under W-2 inclusion). Consult a CPA for your specific situation.
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