Self-employed health insurance deduction & spouse coverage

Forum|Forum|11 months ago
April 29, 2025
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In order to qualify for the self-employed health insurance deduction, you cannot be eligible for coverage through a spouses' employer. What does it mean to be "eligible for coverage"? Technically, I (and my child) can join my spouse's insurance plan, but his employer will not pay any of our portion of the costs. Does this count as being eligible for coverage? Since I soon plan to be self-employed, I'm wondering if I can get insurance for myself and my child from the marketplace instead and then get tax deductions on our premiums. Thanks!

Not A Product Question

Best answer by Vanessa A

Employer sponsored healthcare would be benefits through the company that the employer pays any part of. If the employer is paying even the smallest amount, it would be considered employer sponsored health care.

If the employer does not contribute anything at all to the premiums for you and your child, then you would be able to get insurance through the marketplace and take the premiums as a deduction.

The Self-Employed Health Insurance deduction is limited to your earnings. Meaning, you cannot deduct more than you earned. So, if you do not make a profit in your first year or two, you would not get any benefit from your premium payments.