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I disagree with all of these responses. Look at line 30 on the 1040. 70% of the health insurance premiums are deductible provided your self-income covers at least the amount deducted.

In my case, I am a consultant and most of my earnings are direct w-2-like earnings with no expenses (expenses are covered by the company that hires me on a short-term basis). Therefore, I deduct 70% of my health insurance expenses. I think this is a new provision since this is the first year I have been able to do it, but it may have been in effect last year and I just missed it. But it hasn't been a deduction for a very long time.

My research on the web and a reading of the IRS instructions etc. made me feel comfortable that this is a deductible expense.


This is not a new provision (though the percentages have been changing). However, unless you have Schedule C income or are a "more than 2%" shareholder in an S-Corp that pays you wages, you cannot deduct any portion of your health insurance costs on Line 30 of Form 1040. From your post it is not clear if you qualify or not. You claim you receive "W-2 like" earnings. If they are reported on a W-2, you don't qualify. (Since you state you work for companies that hire you, you probably aren't a 2% shareholder in them.) If they are reported to you on a 1099-MISC (or not reported at all because they are less than $600), you should be filing a Schedule C and you do qualify for the Line 30 adjustment.

Ira
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