Vejledning til Form 7206
Instruktioner for Form 7206, Selv-Employed Health Insurance fradrag
Rev. 2023
Beslægtede formularer
- Form 7206 - Selvstændig sygesikring
Department of the Treasury
Internal Revenue Service
2023
Instructions for Form 7206
Self-Employed Health Insurance Deduction
Section references are to the Internal Revenue Code unless
otherwise noted.
premiums yourself or the partnership can pay them and report
the premium amounts on Schedule K-1 (Form 1065) as
guaranteed payments to be included in your gross income.
However, if the policy is in your name and you pay the premiums
yourself, the partnership must reimburse you and report the
premium amounts on Schedule K-1 (Form 1065) as guaranteed
payments to be included in your gross income. Otherwise, the
insurance plan won’t be considered to be established under your
business.
Future Developments
For the latest information about developments related to Form
7206 and its instructions, such as legislation enacted after they
were published, go to IRS.gov/Form7206.
What’s New
For more-than-2% shareholders, a policy can be either in the
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This form and its separate instructions have replaced the
Self-Employed Health Insurance Deduction Worksheet that was
previously published as a worksheet in Pub. 535, Business
Expenses. Use this form and its instructions to determine any
amount of the self-employed health insurance deduction you
may be able to claim and report on Schedule 1 (Form 1040),
line 17.
name of the S corporation or in the name of the shareholder. You
can either pay the premiums yourself or the S corporation can
pay them and report the premium amounts on Form W-2 as
wages to be included in your gross income. However, if the
policy is in your name and you pay the premiums yourself, the S
corporation must reimburse you and report the premium
amounts in box 1 of Form W-2 as wages to be included in your
gross income. Otherwise, the insurance plan won’t be
considered to be established under your business.
General Instructions
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.
Purpose of Form
Use Form 7206 to determine any amount of the self-employed
health insurance deduction you may be able to report on
Schedule 1 (Form 1040), line 17.
You may be able to deduct the amount you paid for medical
and dental insurance and qualified long-term care insurance for
yourself, your spouse, and your dependents.
You can claim the deduction for self-employed health
insurance on Schedule 1 (Form 1040), line 17.
The health insurance can cover your child who was under age
27 at the end of 2023, even if the child wasn’t your dependent. A
child includes your son, daughter, stepchild, adopted child, or
foster child. A foster child is any child placed with you by an
authorized placement agency or by judgment, decree, or other
order of any court of competent jurisdiction.
Limitations. Generally, you may be able to deduct the total
amount paid in 2023 for health insurance coverage established
under your business (or the S corporation in which you were a
more-than-2% shareholder) for 2023 for you, your spouse, and
your dependents. Your insurance can also cover your child who
was under age 27 at the end of 2023, even if the child was not
your dependent. But don't include the following.
Members of clergy, see Health Insurance Costs of
Amounts for any month you were eligible to participate in a
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Self-Employed Ministers in Pub. 517 for special rules
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health plan subsidized by your employer or your spouse's
employer or the employer of either your dependent or your child
who was under the age of 27 at the end of 2023.
CAUTION
regarding these costs.
Additional information. One of the following statements must
If you are a retired public safety officer, amounts excluded
be true.
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from gross income, not to exceed $3,000, if the amounts (1)
were paid by your retirement plan directly to the insurer for
qualified health insurance premiums or (2) received by you from
that retirement plan and used to pay those premiums.
You were self-employed and had a net profit for the year
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reported on Schedule C (Form 1040) or Schedule F (Form
1040).
You were a partner with net earnings from self-employment for
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the year reported on Schedule K-1 (Form 1065), box 14,
code A.
How to figure the deduction. Generally, you can use the
worksheet in the Form 1040 instructions to figure your deduction.
However, if any of the following apply, you must use Form 7206.
You used one of the optional methods to figure your net
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earnings from self-employment on Schedule SE.
You had more than one source of income subject to
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You received wages in 2023 from an S corporation in which
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self-employment tax.
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.
You file Form 2555.
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You are using amounts paid for qualified long-term care
insurance to figure the deduction.
The insurance plan must be established, or considered to be
established, as discussed in the following bullets, under your
business.
See Pub. 974 if the insurance plan was considered to be
established under your business and was obtained
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CAUTION
through the Marketplace, and advance payments of the
For self-employed individuals filing a Schedule C (Form 1040)
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premium tax credit were made or you are claiming the premium
tax credit.
or Schedule F (Form 1040), a policy can be either in the name of
the business or in the name of the individual.
For partners, a policy can be either in the name of the
More than one health plan and business. If you have more
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partnership or in the name of the partner. You can either pay the
than one health plan during the year and each plan is
Feb 6, 2024
Cat. No. 93753O
established under a different business, you must use a separate
Form 7206 to figure each plan's net earnings limit. Include the
premium you paid under each plan on line 1 or line 2 of each
Form 7206 and your net profit (or wages) from that business on
line 4 (or line 11). For a plan that provides long-term care
insurance, the total of the amounts entered for each person on
line 2 of all Form(s) 7206 can’t be more than the appropriate limit
shown on line 2 for that person.
An individual who has been unable, due to loss of functional
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capacity for at least 90 days, to perform at least two activities of
daily living without substantial assistance from another
individual. Activities of daily living are eating, toileting,
transferring (general mobility), bathing, dressing, and
continence.
An individual who requires substantial supervision to be
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protected from threats to health and safety due to severe
cognitive impairment.
Qualified long-term care insurance. You can include
premiums paid on a qualified long-term care insurance contract
when figuring your deduction. But, for each person covered, you
can include only the smaller of the following amounts.
The certification must have been made by a licensed
health care practitioner within the previous 12 months.
TIP
Benefits received. For information on excluding benefits you
receive from a long-term care contract from gross income, see
Pub. 525.
1. The amount of premiums paid for that person.
2. The amount shown below. Use the person's age at the
end of the tax year.
Other coverage. You can’t take the deduction for any month
you were eligible to participate in any employer (including your
spouse's) subsidized health plan at any time during that month,
even if you didn’t actually participate. In addition, 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
2023, don’t use amounts paid for coverage for that month to
figure the deduction.
These rules are applied separately to plans that provide
long-term care insurance and plans that don’t provide long-term
care insurance. However, any medical insurance payments not
deductible on Schedule 1 (Form 1040), line 17, can be included
as medical expenses on Schedule A (Form 1040) if you itemize
deductions.
a. Age 40 or younger — $480
b. Age 41 to 50 — $890
c. Age 51 to 60 — $1,790
d. Age 61 to 70 — $4,770
e. Age 71 or older — $5,960
Qualified long-term care insurance contract. A qualified
long-term care insurance contract is an insurance contract that
only provides coverage of qualified long-term care services. The
contract must meet all the following requirements.
It must be guaranteed renewable.
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It must provide that refunds, other than refunds on the death
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of the insured or complete surrender or cancellation of the
contract, and dividends under the contract may be used only to
reduce future premiums or increase future benefits.
Effect on itemized deductions. Subtract the health insurance
deduction from your medical insurance when figuring medical
expenses on Schedule A (Form 1040) if you itemize deductions.
It must not provide for a cash surrender value or other money
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that can be paid, assigned, pledged, or borrowed.
It must generally not pay or reimburse expenses incurred for
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services or items that would be reimbursed under Medicare,
except where Medicare is a secondary payer or the contract
makes per diem or other periodic payments without regard to
expenses.
Effect on self-employment tax. You can’t subtract the
self-employed health insurance deduction when figuring net
earnings for your self-employment tax from the business under
which the insurance plan is established, or considered to be
established, as discussed earlier. For more information, see
Schedule SE (Form 1040).
Qualified long-term care services. Qualified long-term care
services are:
Necessary diagnostic, preventive, therapeutic, curing,
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You can generally deduct premiums you pay for certain
treating, mitigating, and rehabilitative services; and
kinds of insurance related to your trade or business as
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Maintenance or personal care services.
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CAUTION
an expense. See the instructions for your trade or
The services must be required by a chronically ill individual and
prescribed by a licensed health care practitioner.
business return.
Chronically ill individual. A chronically ill individual is a
person who has been certified as one of the following.
2