The Self-Employed Health Insurance Deduction, Explained
If you are self-employed and pay your own health insurance, you may be able to deduct the premiums above the line. Here is who qualifies, what counts, and the income limit.
Mylo Team • September 4, 2026 • 2 min read
The short answer
If you are self-employed, pay for your own health coverage, and are not eligible for a subsidized plan through an employer or a spouse's employer, you can generally deduct your premiums. It is an above-the-line deduction, which means you get it even without itemizing, and it can include your spouse and dependents.
Who qualifies
You need net profit from self-employment, and you must not have access to a subsidized health plan through your own or a spouse's employer for the months you claim. Sole proprietors, partners, and more-than-2% S-corporation shareholders can generally qualify, though S-corp owners have extra steps involving how the premiums are reported. If you had employer coverage available, even if you declined it, you generally cannot claim it for those months.
What counts and the income limit
Qualifying premiums include medical and dental coverage, and long-term care premiums up to age-based caps, for you, your spouse, and your dependents. The key limit is income: the deduction cannot exceed your net self-employment earnings from the business the plan relates to. A year with a business loss generally means no deduction for that stretch.
Keeping it clean
Because the deduction is capped at your net profit, accurate income and expense records matter as much as the premium statements. Keep proof of what you paid, and keep your books tidy the way a self-employed expense tracker helps you do. It is one of the bigger write-offs available to the self-employed, so see it in context in what you can write off on your taxes.
The faster way: let Mylo keep the proof automatically
This is where Mylo quietly does the heavy lifting. It works in the background to capture every receipt from your inbox and the stores you shop at, matches each one to the card charge that paid for it, and files it as a categorized expense, so when you claim self-employed health premiums the proof is already there. No new card and no manual entry: Mylo works on top of the Visa, Mastercard, or Amex you already use, and syncs clean, categorized expenses to QuickBooks. Free for individuals on iOS, Android, and the web; teams are $9/user/mo (30-day free trial).
Sources: IRS guidance on the self-employed health insurance deduction (Publication 535). This article is general information, not tax advice. Rules change and situations differ, so check with a qualified tax professional for your situation.
Frequently asked questions
Who can take the self-employed health insurance deduction?
Self-employed people with a net profit who are not eligible for a subsidized health plan through an employer or a spouse's employer. Sole proprietors, partners, and certain S-corp owners can generally qualify.
What premiums count?
Medical and dental premiums, and qualifying long-term care premiums up to age-based limits, for you, your spouse, and your dependents. It is the premiums you pay yourself, not amounts already excluded from income.
Is there a limit?
Yes. The deduction cannot exceed your net self-employment income from the business the plan is tied to. If the business had a loss, you generally cannot take it for that period.
How does Mylo help?
Mylo keeps your business income and expenses organized so your net profit is clear, which matters because this deduction is capped at that number.
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Mylo Team
The Mylo Team writes practical guides on receipts, expenses, write-offs and keeping your books clean, from the people building Mylo, the app that puts receipts and expenses on autopilot.
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