Self-Employed Health Insurance Deduction Gets Better

Starting in 2003, consultants, freelance workers, and other self-employed individuals will be allowed to deduct 100 percent of their health insurance premiums. This is an increase from the 70 percent thats deductible on the 2002 tax return.

Starting in 2003, consultants, freelance workers, and other self-employed individuals will be allowed to deduct 100 percent of their health insurance premiums. This is an increase from the 70 percent thats deductible on the 2002 tax return.

Given the high cost of health insurance, this tax break is significant for small business owners" says Daniel Lamaute of Investsafe.com, a website that caters to the self-employed. The best part about it is that you can take the self-employed health insurance deduction even if you do not itemize your deductions on your tax return" says Lamaute.

Many self-employed are uninsured. The self-employed make up about 12 percent of the 24 million workers that have no health insurance, according to a study in January 2003 by the Kaiser Family Foundation.

The increased tax deduction should make it easier for the self-employed to buy health insurance for themselves and their family" says Lamaute.