 Image: shimelle under CC 3.0 |
Unlike employees with corporate-sponsored health insurance, the self-employed have had to take charge of their own health care. In most cases, they must pay for their health insurance plans out of pocket.
This year, a provision in the Small Business Jobs and Credit Act will allow self-employed S-corp, single member LLC, or sole proprietorship business owners to deduct the cost of health insurance premiums from their tax returns. Like other corporations, they can deduct health care as a business expense for their 2010 tax returns.
This is especially helpful since sole proprietors have to pay both the employer and employee portions of payroll taxes.
Tags: health coverage, health insurance plans, self-employed health insurance, small business jobs and credit act, tax breaks, tax deductions, taxes
