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Track healthcare deductions in QuickBooks Self-Employed

SOLVEDby QuickBooks16Updated 1 year ago

See what healthcare expenses may be deductible.

If you're self-employed, you may be able to deduct some of your healthcare and related taxes. The rules about what's eligible can be tricky. Always check the IRS website for the most up-to-date info on healthcare and Health Savings Accounts (HSA).

Here's a quick overview of the types of healthcare deductions. You can check if you qualify in QuickBooks Self-Employed.

Step 1: Fill out your health profile

If you use QuickBooks Self-Employed, fill out your healthcare profile. This tells you if and which healthcare expenses you can deduct. QuickBooks can also include eligible expenses as part of your federal estimated tax payments you make each quarter.

Step 2: Learn about healthcare deductions

QuickBooks Self-Employed looks at two types of healthcare deductions:

This deduction is only available to self-employed individuals.

If eligible, you can claim deductions for health insurance premiums you pay for yourself and your tax dependents. You may also be able to claim dental and vision insurance too. Here are the general eligibility requirements:

  • You’re self-employed
  • You made a net profit for the year
  • You pay insurance premiums
  • Your policy is listed in your name (or your business name)

Important: If you're offered health insurance from your employer, spouse's employer, or parents, but you decline it or opt-out, you can't claim deductions for the health insurance premiums you pay on your own.

The deduction total is limited to the amount of your business income. The IRS also makes a few adjustments. TurboTax or your accountant can help you with the specifics.

Anyone can claim deductions for eligible Health Savings Account (HSA) contributions, not just self-employed individuals.

If eligible, you can deduct contributions and deposits you make to an HSA. If you make contributions and have a high-deductible health plan (HDHP), you may be able to deduct them from your annual taxes. Learn more about high-deductible health plans and HSAs on the IRS website.

How do healthcare deductions show up

Both types of deductions affect your household’s overall tax picture. However, neither are part of your self-employed expenses, deductions, or profits. And they won’t appear on your Schedule C either. They’re personal deductions, not business ones.

Instead, these deductions are part your adjusted gross income:

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Note: Totals for the healthcare categories don't show up in QuickBooks Self-Employed until you complete your health profile and start categorizing the payments.

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