Do you deduct your Health Insurance Premium?

With tax season right around the corner, you have probably begun to look into what deductions you can take. After all, the more deductions you have the better off you will be when filing your return. Believe it or not, if you are self-employed you have the right to deduct 100 percent of your health insurance premium. As you can imagine, this can add up to thousands of dollars over a 12 month span.

It is a shame that many self-employed workers miss out on this deduction every year. The main reason that this happens is that these people are afraid that they are doing something against the rules. So instead of finding out or asking a professional, they simply do without. This is a big mistake that could cost you and your business a nice chunk of money.

A self-employed health insurance policy can cost anywhere from $50 up to $500. Of course, how much you pay for health insurance each month depends on your plan. But it does no matter how much you spend; all of it is deductible. Imagine if you pay $200 per month for a health insurance plan. This means that you should be able to deduct $2,400 worth of expenses on your return. Would that help to lessen your tax burden? No matter who you are, the answer should be yes. Even if you are already set to get a rebate, if you add this deduction you will have even more money coming to you.

If you work for yourself, you need to deduct your health insurance premium this year. For those filers who are unsure of how this works, it is worth getting help from a professional. They will be able to tell you how this process works, as well as what other health insurance expenses you can deduct. Why miss out on thousands of dollars in deductions when you do not have to? If you skip this again in 2008, you are once again leaving money to the IRS that is rightfully yours.