Are Health Insurance Premiums Tax Deductible for Small Business Owners?


Are Health Insurance Premiums Tax Deductible for Small Business Owners?

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Health Insurance Premiums are Tax Deductible for Small Business Owners When Reported on Their 1040s

DALLAS, TX – With under a month before the April 15th tax filing deadline, the National Association for the Self-Employed (NASE), the nation’s leading advocate and resource for the self-employed and micro-businesses, today released guidance on how small business owners can deduct health insurance premiums on their 2015 tax returns.

“Small business owners’ health insurance premiums are not tax deductible in the same manner as big businesses,” said Keith Hall, President and CEO of NASE. “However, if you pay for qualified health care and medical expenses as a self-employed small business owner, there is a deduction available. The deduction does not go on your Schedule C; rather it’s reported on your 1040 under self-employed health insurance premium deduction. Keep in mind that the deduction is limited to earnings from self-employment and the health care policy must be formed under your business. The bottom line: there is a deduction for health insurance premiums for self-employed small businesses.”

Click here or above to watch the NASE Minute where Keith Hall explains how to deduct health insurance premiums

The National Association for the Self-Employed also recently released a set of updates, adjustments and remindersfor filing accurate and beneficial 2015 tax returns:


  • The Affordable Care Act (ACA) penalty for non-compliance
  • Potential individual exceptions to the ACA penalty
  • A streamlined, standard home office deduction is now available
  • The standard mileage rate for business use of an automobile has changed from 56 cents per mile to 57.5 cents for 2015. It will be 54 cents in 2016.  
  • Limits for retirement plan contributions such as IRAs and 401(k) plans have increased
  • Restrictions for the applicability of Health Reimbursement Accounts (HRAs)


  1. Gather Your Documents Early – don’t wait until the last minute; now is the time to start making sure you have all your important tax filing documents.
  2. You’re Not Alone – stay connected; there are resources out there to help you from to and tax professionals.
  3. Educate Yourself About Changes to the Tax Code – believe it or not, there are changes and adjustments to the tax code year-to-year; make sure you find out what they are so you are prepared and can take advantage of them.
  4. Don’t Forget About Hidden or Overlooked Deductions – don’t leave anything on the table; make sure you are not missing any deductions that apply to you that can make the difference, such mileage reimbursement, retirement contribution and the home office deduction.
  5. Be Creative and Proactive – Don’t wait until April 15th to plan on lowering your tax bill.

For more information on completing your 2015 tax documents, visit NASE’s tax resource center or the IRS or theSmall Business Administration (SBA).


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 Small Business Locator helps identify and connect our nation’s smallest businesses. In addition, NASE’s new health care portal helps small business owners navigate the nation’s health care marketplace. 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 website at

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