The Self-employed Can Employ Special Break On Medical Expenses - Chicago Tribune

self pay medical insurance

The Self-employed Can Employ Special Break On Medical Expenses

The law makes it difficult to deduct medical expenses. Most medical outlays are allowable only for the part above 7 1/2 percent of adjusted gross income, or AGI for short. AGI is the amount you show at the bottom of Page 1 of Form 1040 after listing salaries and other sources of income and deducting such items as funds put in IRAs, but before itemizing for outlays such as interest on home mortgages.

Self-employeds can take a business-expense deduction for 25 percent of the premiums they pay for medical insurance for themselves and their spouses and dependents.

This deduction for medical insurance payments by self-employeds is not subject to the 7 1/2 percent threshold for all other medical expenses. Instead, like writeoffs for money stashed in IRAs or alimony payments, the ... http://insurance-h.ucoz.com/news/self_pay_medical_insurance/2013-06-25-3695