Self-employed · Taxes & coverage
The self-employed health insurance deduction, explained (Form 7206)
If you work for yourself, your premiums may be deductible. Here’s what the IRS says counts, the rule that trips people up, and why it matters for your 2027 plan.
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- Medical, dental & vision
- Spouse, dependents, kids under 27
- Not tax advice
Plan my 2027 coverage
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The rule that blocks it
You can’t take the deduction for any month you were eligible to join a subsidized employer plan, including your spouse’s, even if you didn’t enroll.[1]
Why it matters for your Marketplace plan
- Your premium tax credit depends on household income, and self-employed income often swings.[2]
- Starting with tax year 2026, there’s no cap on repaying excess advance credit.[3]
- For 2027 coverage, credits stop above 400% of poverty ($63,840 for one person).[4]
General information, not tax advice. Work out your deduction with your tax professional.
See health insurance for the self-employed, 1099 and gig workers and self-employed dental.
Sources
- IRS, Instructions for Form 7206. https://www.irs.gov/instructions/i7206
- IRS, Questions and answers on the premium tax credit. https://www.irs.gov/affordable-care-act/individuals-and-families/questions-and-answers-on-the-premium-tax-credit
- 26 U.S.C. §36B and notes (Pub. L. 119-21 §71305, effective for tax years after Dec. 31, 2025), Cornell LII. https://www.law.cornell.edu/uscode/text/26/36B
- HHS ASPE, 2026 Poverty Guidelines (used for 2027 coverage). https://aspe.hhs.gov/topics/poverty-economic-mobility/poverty-guidelines
Checked October 16, 2026. 2027 Marketplace plans and final 2027 rates aren’t published yet; we’ll update this page when they are.
Frequently asked questions
Can self-employed people deduct health insurance premiums?
Often yes, using IRS Form 7206. It can cover medical, dental, vision and qualified long-term care insurance for you, your spouse and dependents, plus a child under 27.
When can't I take the deduction?
For any month you were eligible for a subsidized employer plan, including a spouse's, even if you didn't enroll.
Is this tax advice?
No. It's general information from the IRS instructions. Ask your tax professional.
Will you sell my information?
No. Your information goes to Nexus Benefit Solutions only and is never sold.