Don’t Miss Out on This Important Tax Deduction for Realtors

As a self-employed realtor, you are responsible for your own health insurance. This can be a huge expense, especially if you have a family. Luckily, there is a tax deduction that you may be able to take advantage of! In this article, we will discuss the self-employed health insurance deduction and how you can claim it on your taxes.

How Does it Work

The self-employed health insurance deduction is available to taxpayers who are self-employed or who are employed by a company that does not offer health insurance coverage. If you are self-employed, you can deduct the cost of your health insurance premiums from your business income. If you are employed by a company that does not offer health insurance coverage, you can deduct the cost of your health insurance premiums from your income taxes.

Some of the expenses include medical, dental, and qualifying long-term care insurance premiums that you pay for yourself, your spouse, and your dependents. The advantages are as follows::

  • Entering this health insurance tax deduction write-off on Part II of Schedule 1 means you get the deduction whether or not you itemize your other deductions on page 1 of Form 1040.
  • The great thing about this deduction is that it lowers your AGI (adjusted gross income).
  • A lower AGI can help you avoid unfavorable phase-out rules that could eliminate certain tax breaks.

Eligibility is checked and confirmed monthly.

You can only claim the health insurance premiums write-off for months when you or your spouse weren’t eligible to have an employer-subsidized health plan.

For example, let’s say you were single and became ineligible for any employer-provided health plan during the last six months of the year because you left your job to start your own business. You can claim a deduction for premiums paid towards coverage during that six-month period.

Conclusion

The self-employed health insurance deduction can save you a significant amount of money on your taxes. Be sure to take advantage of it if you are eligible!

If you have any questions about the self-employed health insurance deduction or how to claim it, please contact us today. We will be able to give you the most accurate information and help you file your taxes correctly.