Form 7206, Self-Employed Health Insurance Deduction
Form 7206 figures the health insurance deduction for self-employed people, which flows to Schedule 1 of Form 1040 as an above-the-line deduction. Fill in the official IRS PDF below and download it.
This is the genuine IRS PDF, unmodified. Source: IRS official page.
What is 7206?
Self-employed taxpayers can generally deduct premiums for medical, dental, and qualified long-term care insurance covering themselves, a spouse, and dependents, without itemizing. Form 7206 replaced the worksheet that used to live in the instructions: it totals the eligible premiums, applies the long-term care premium limits by age, and caps the deduction at the earned income from the business under which the plan is established.
The result goes to Schedule 1 (Form 1040), line 17. The calculation interacts with the premium tax credit for marketplace coverage, so taxpayers who received advance credit payments may need the more involved computations in Publication 974 instead of this form alone.
Who files 7206?
- Sole proprietors with net profit on Schedule C who paid their own health insurance premiums
- Partners and LLC members with self-employment earnings whose premiums were paid or reimbursed by the partnership
- More-than-2% S corporation shareholders whose premiums were included in their W-2 wages
- Self-employed people paying qualified long-term care insurance premiums
How to fill out 7206
- Total the premiums you paid during the year for medical and dental coverage for yourself, your spouse, and dependents.
- Enter qualified long-term care premiums separately, applying the age-based limits from the instructions.
- Enter the earned income from the trade or business under which the insurance plan is established, since the deduction cannot exceed it.
- Follow the line-by-line computation to arrive at your allowed deduction.
- Download the completed PDF, carry the result to Schedule 1 (Form 1040), line 17, and keep Form 7206 with your records or attach it if required.
Quick fill 7206 on this page
Prefer to see the form itself while you type? Open 7206 in the editor to fill it on the actual pages, add a signature, and download.
Frequently asked questions
Can I take this deduction if I could join my spouse’s employer plan?
No. The deduction is not allowed for any month you were eligible to participate in an employer-subsidized plan, whether your employer’s or your spouse’s, even if you chose not to enroll.
Do I need to itemize to deduct self-employed health insurance?
No. This is an adjustment to income on Schedule 1, so it reduces adjusted gross income whether or not you itemize. Premiums that exceed the allowed amount may still count as medical expenses on Schedule A if you itemize.
What if I bought marketplace coverage with the premium tax credit?
The deduction and the credit affect each other, and Form 7206 alone may not handle it. Publication 974 has the calculations for coordinating the self-employed health insurance deduction with the premium tax credit.