Guides · Insurance coverage

The self-employed health insurance deduction

If you're self-employed with a net profit, you may be able to deduct health insurance premiums for yourself, your spouse and dependents as an adjustment to income. You figure it on Form 7206 or a worksheet in the Form 1040 instructions, and report it on Schedule 1 of Form 1040.

The plan must be established under your business, the deduction can't exceed your earned income from that business, and you can't take it for a month you could join a subsidized employer plan. This is a general overview; check with a tax advisor.

Updated · Facts checked against the sources listed below

Who may qualify

Per the IRS instructions for Form 7206 (2025), you generally need self-employment earnings: a net profit on Schedule C or F, partner earnings, or wages as a more-than-2% S corporation shareholder.

  • The plan must be established under your business. For partners and more-than-2% S corporation shareholders, a policy in your own name counts only if the business pays or reimburses the premiums and reports them as income to you: on Schedule K-1 for partners, or as W-2 wages for S corporation shareholders.
  • The deduction can't exceed your earned income from the business the plan is under.
  • Eligible coverage: medical, dental and vision insurance, plus qualified long-term care insurance (capped by age), for you, your spouse, your dependents and a child under 27.

The employer plan rule

You can't take the deduction for any month you were eligible to join a subsidized health plan through your employer or your spouse's employer, even if you didn't enroll. The same goes for a subsidized plan from the employer of your dependent or of your child under 27. The test is applied month by month, and separately for long-term care coverage.

How it's claimed

  1. Figure the amount on Form 7206 or the worksheet in the Form 1040 instructions. Form 7206 is required if you had more than one source of self-employment income, file Form 2555, or include long-term care premiums.
  2. Report it on Schedule 1 (Form 1040).
  3. Don't count the same premiums again as an itemized medical expense on Schedule A.
  4. If your plan came from the Marketplace with premium tax credits, the IRS points you to Publication 974 for how the two interact.

Records worth keeping

  • Monthly premium invoices and proof of payment
  • Marketplace Form 1095-A and premium tax credit records
  • Partnership or S corporation reimbursement and payroll records
  • Proof of whether you or your spouse could join an employer plan each month

Gabriel membership is not health insurance, so don't assume its fee is a deductible insurance premium. Part of a membership may be HSA/FSA eligible: the clinical portion (for example $39 of Core's $49, or $69 of Plus's $89), and Gabriel can provide an itemized statement. Ask your plan administrator or a tax advisor how it applies to you. Membership could also affect whether you can keep contributing to an HSA; see HSA for self-employed people.

Gabriel is a membership, not health insurance, and Gabriel is not an insurer. It does not replace an ACA plan's protection against large medical bills.

Common questions

Is the self-employed health insurance deduction the same as the medical expense deduction?

No. It's an adjustment to income with its own rules, so you can take it without itemizing. Don't deduct the same premium twice.

Can I deduct premiums if my spouse's employer offers coverage?

Generally not for months when you were eligible for a subsidized plan through your spouse's employer, even if you didn't enroll.

Does the deduction include dental and vision?

Yes. The IRS includes medical, dental and vision insurance, and qualified long-term care insurance up to an age-based limit.

Can S corporation owners take it?

More-than-2% shareholders can, if the S corporation pays or reimburses the premiums and includes them in W-2 wages. Ask a tax advisor about your setup.

Is a Gabriel membership tax deductible?

Gabriel is not insurance, so its fee isn't an insurance premium. The clinical portion may be HSA/FSA eligible; check with your plan administrator or a tax advisor.

Sources

  1. Instructions for Form 7206: Self-Employed Health Insurance Deduction (2025) IRS
  2. Publication 502: Medical and Dental Expenses IRS
  3. Health coverage options for the self-employed HealthCare.gov

This guide is general information, not medical advice. It does not replace a visit with a licensed clinician. Gabriel membership is not health insurance.