Self-Employed Health Insurance Deduction Worksheet—Schedule 1, Line 17

Tax Tables Be sure you have read the Exceptions in the instructions for this line to see if you can use this worksheet instead of Form 7206 to figure your deduction.

1. Enter the total amount paid in 2025 for health insurance coverage established under your business (or the S corporation in which you were a more-than-2% shareholder) for 2025 for you, your spouse, and your dependents. Your insurance can also cover your child who was under age 27 at the end of 2025, even if the child wasn’t your dependent. But don’t include amounts for any month you were eligible to participate in an employer-sponsored health plan or amounts paid from retirement plan distributions that were nontaxable because you are a retired public safety officer 1. _____ 2. Enter your net profit* and any other earned income** from the business under which the insurance plan is established, minus any deductions on Schedule 1, lines 15 and 16. Don’t include Conservation Reserve Program payments exempt from self-employment tax 2. _____ 3. Self-employed health insurance deduction. Enter the smaller of line 1 or line 2 here and on Schedule 1, line 17. Don’t include this amount in figuring any medical expense deduction on Schedule A 3. _____ * If you used either optional method to figure your net earnings from self-employment, don’t enter your net profit. Instead, enter the amount from Schedule SE, line 4b. ** Earned income includes net earnings and gains from the sale, transfer, or licensing of property you created. However, it doesn’t include capital gain income. If you were a more-than-2% shareholder in the S corporation under which the insurance plan is established, earned income is your Medicare wages (box 5 of Form W-2) from that corporation.

One of the following statements must be true.

You were self-employed and had a net profit for the year reported on Schedule C or F.

You were a partner with net earnings from self-employment.

You used one of the optional methods to figure your net earnings from self-employment on Schedule SE.

You received wages in 2025 from an S corporation in which you were a more-than-2% shareholder. Health insurance premiums paid or reimbursed by the S corporation are shown as wages on Form W-2.

The insurance plan must be established under your business. Your personal services must have been a material income-producing factor in the business. If you are filing Schedule C or F, the policy can be either in your name or in the name of the business.

If you are a partner, the policy can be either in your name or in the name of the partnership. You can either pay the premiums yourself or your partnership can pay them and report them as guaranteed payments. If the policy is in your name and you pay the premiums yourself, the partnership must reimburse you and report the premiums as guaranteed payments.

If you are a more-than-2% shareholder in an S corporation, the policy can be either in your name or in the name of the S corporation. You can either pay the premiums yourself or the S corporation can pay them and report them as wages. If the policy is in your name and you pay the premiums yourself, the S corporation must reimburse you. You can deduct the premiums only if the S corporation reports the premiums paid or reimbursed as wages in box 1 of your Form W-2 in 2025 and you also report the premium payments or reimbursements as wages on Form 1040 or 1040-SR, line 1a.

But if you were also eligible to participate in any subsidized health plan maintained by your or your spouse’s employer for any month or part of a month in 2025, amounts paid for health insurance coverage for that month can’t be used to figure the deduction. Also, if you were eligible for any month or part of a month to participate in any subsidized health plan maintained by the employer of either your dependent or your child who was under age 27 at the end of 2025, don’t use amounts paid for coverage for that month to figure the deduction.

A qualified small employer health reimbursement arrangement (QSEHRA) is considered to be a subsidized health plan maintained by an employer.

Example.

If you were eligible to participate in a subsidized health plan maintained by your spouse’s employer from September 30 through December 31, you can’t use amounts paid for health insurance coverage for September through December to figure your deduction.

Medicare premiums you voluntarily pay to obtain insurance in your name that is similar to qualifying private health insurance can be used to figure the deduction. Amounts paid for health insurance coverage from retirement plan distributions that were nontaxable because you are a retired public safety officer can’t be used to figure the deduction.

For more details, see Instructions for Form 7206.

If you qualify to take the deduction, use the Self-Employed Health Insurance Deduction Worksheet to figure the amount you can deduct.

Exceptions.

Use Form 7206 instead of the Self-Employed Health Insurance Deduction Worksheet in these instructions to figure your deduction if any of the following applies.

You had more than one source of income subject to self-employment tax.

You file Form 2555.

You are using amounts paid for qualified long-term care insurance to figure the deduction.

Use Pub. 974 instead of the worksheet in these instructions if the insurance plan was considered to be established under your business and was obtained through the Marketplace, and advance payments of the premium tax credit were made or you are claiming the premium tax credit.