Freelance Money Tools
Deductions

You pay your own health insurance. At least make it deductible.

Freelancers can write off 100% of their premiums — medical, dental, vision, for the whole family. Here's what yours is worth.

2026 IRS numbers
Stays on your device
No account

Tax data last updated: July 2026. Sources & methodology

Your numbers

$

What you pay for medical, dental, and vision — yourself, spouse, dependents.

$

1099 income minus business expenses. The deduction can't exceed this.

Your 2026 premium deduction
$6,000

At your 22% bracket, that's about $1,320 less federal tax.

Premiums paid
$6,000
Deductible amount
$6,000
Marginal tax rate
22%
Estimated federal tax saved
$1,320

One big catch: you can't claim this for any month you were eligible for an employer-sponsored plan — yours or a spouse's — even if you didn't enroll. This deduction lowers income tax but not self-employment tax. Not tax advice.

How this is calculated

The deduction is your total premiums for the year, limited to your net self-employment income — the IRS won't let the write-off exceed what the business actually earned. It goes on Schedule 1 as an "above-the-line" deduction, which means you get it on top of the standard deduction, not instead of it.

To show what it's worth, we multiply the deductible amount by your marginal federal rate. One thing it doesn't do: reduce self-employment tax. Premiums come off your income tax only, which trips up a lot of first-year freelancers doing the math.

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Self-employment tax calculator

SE tax + federal income tax on 1099 income.

Retirement

HSA contribution

Limits and tax savings if you are on an HDHP.

Deductions

QBI (Section 199A)

The 20% deduction - do you qualify?

Common questions

Yours, your spouse's, your dependents', and children under 27 even if they're not dependents. Medical, dental, vision, and some long-term-care premiums (those have age-based caps) all count.
For any month you were *eligible* for an employer-subsidized plan — through your own W-2 job or your spouse's — you can't take the deduction for that month. Eligible, not enrolled. Turning the plan down doesn't restore the deduction.
You can only deduct what you actually paid after the premium tax credit. The interaction between the subsidy and the deduction is circular and genuinely annoying — tax software handles it, or a CPA does.
No, and it matters: it goes on Schedule 1 (line 17), not Schedule C. That's why it reduces income tax but not self-employment tax. Putting it on Schedule C is a common DIY mistake that overstates the benefit.