Question: I’m starting a self-employed business. Can I deduct health insurance as a medical expense? E.E., Elmhurst, IL
Answer: Yes. In fact, you can do even better than the itemized deduction for medical expenses. Currently, the deduction is limited to the excess of your qualified expenses, including health insurance, over 7.5% of your adjusted gross income (AGI). But you can usually deduct health insurance as a self-employed individual above the line on your return without regard to any AGI limit. What’s more, you can add in costs of health insurance paid for your spouse, even if they don’t work in your business. Your tax advisor can give you all the details to qualify for this break.