House Introduces Tax Savings Legislation For The Self Employed

For Immediate Release:

Contact:

Kristin Oberlander
(202) 466-2100
[email protected]
Twitter: koberlander, NASEtweets

Bill Would Allow Sole Proprietors, For The First Time, To Deduct Health Insurance Premiums As A Business Expense

Washington, D.C., March 3, 2011 – A longtime priority of the National Association for the Self-Employed (NASE) has been introduced in the House. U.S. Reps. Wally Herger (R-Calif.) and Ron Kind (D-Wis.) have re-introduced legislation to address an unfair tax on health insurance premiums for the self-employed. Under the current tax code, sole proprietors are the only business entity that cannot deduct their health insurance premiums for self employment tax (payroll tax) purposes. Last September, Congress passed legislation allowing the self-employed to fully deduct their health coverage costs from their 2010 taxes.

This provides an important tax break for the over 23 million self-employed Americans that represent 78 percent of all small businesses in the U.S. This deduction only applies to the 2010 tax year and provides a 15% lower tax liability, resulting in a larger refund. The Herger-Kind legislation would permanently eliminate this inequality in our tax code.

NASE Executive Director Kristie Arslan added, "The temporary one-year tax deduction included in the Small Business Jobs and Credit Act of 2010 is a big "win" for the self-employed community. However, the tax deduction needs to be permanent in order to have the most impact. For far too long, the self-employed have not received the same tax treatment as big business in regards to health care costs. This bill makes a simple change in the tax code that will make a big difference to millions of entrepreneurs each year."

Read here about how the temporary SE tax deduction on 2010 returns applies to you.

About the NASE
The National Association for the Self-Employed (NASE) is the nation's leading resource for the self-employed and micro-businesses, bringing a broad range of benefits to help entrepreneurs succeed and to drive the continued growth of this vital segment of the American economy. The NASE is a 501(c) (6) nonprofit organization and provides big-business advantages to hundreds of thousands of micro-businesses across the United States. For more information, visit the association's Web site at www.NASE.org.

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