Self-employed individuals who are paying health insurance costs may qualify for a 2011 tax deduction for premiums they pay in 2010 as a small business owner. Obviously, individuals who run their own business and must meet health insurance costs as a result often are in a financially troubling position due to the fact that an individual health insurance plan can become quite expensive when a single individual is meeting the entirety of their costs. While some entrepreneurs may choose a less inclusive health insurance plan, those who are paying on a health insurance policy that will offer them more assistance with their health care needs are obviously in a position where any assistance with the taxes they must pay or overall costs that are met on their health insurance premiums will be welcome.
An article on this subject from BusinessWeek.com sums up the benefit of this health insurance tax deduction by stating, “The new deduction exempts solo business owners from paying self-employment tax on the portion of their income that they spend on health premiums.” Essentially, self-employed individuals who are relying only on themselves to meet health insurance costs may qualify for this deduction and could offer these business owners the chance to either pay less in taxes this year or some business owners may receive more back after they file.
Obviously, an entrepreneur’s situation and costs associated with their health insurance will determine whether they qualify for this particular tax deduction, but there are those who want this particular type of assistance for small businesses who either provide health insurance for multiple workers or, in this case, entrepreneurs who are self-employed, work alone, and must pay for their own health insurance, to become a more permanent fixture in health insurance laws so that self-employed men and women can have some alleviation in the costs they must pay towards providing health care coverage for themselves.
Yet, when it comes to acquiring some form of health insurance policy, those who are self-employed do have options that may offer more affordability. Some small business owners who are solo employees have opted for a high deductible health insurance plans as they are only attempting to guard themselves against medical costs in the case of a catastrophic event that would require surgery or a great deal of medical treatment. However, for small-business owners who want a more inclusive health insurance plan, there are obviously concerns as to how more affordability may be obtained by individual business owners who are simply unable to meet high costs associated with individual health insurance plans.