Health insurance tax deduction for the self-employed
On Sept. 27, 2010 the Small Business Jobs Act was signed into law providing a new tax deduction
for self-employed individuals who purchase their own health insurance. The provision, which is expected to affect up to two million small business owners, may provide a deduction when calculating their self-employment taxes. The provision is estimated to provide over $1.9 billion in tax cuts to these entrepreneurs.¹
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According to Wayne Nelson, president of Communicating for America, Inc. (CA), the fix is only good for the 2010 tax year but CA and other groups are working on making it permanent next year. It could mean an additional 15 percent tax savings when deducting your health insurance premium.