Self-Employed Health Insurance and 1997 Tax Act

Self-Employed Health Insurance and 1997 Tax Act

Improvement in self-employed's ability to deduct health insurance

Improvement in self-employed's ability to deduct health insurance

In 1997, self-employed people can deduct 40 percent of the cost of their health insurance

Under the old tax law, this deductibility was scheduled to gradually increase to a maximum deductibility rate of 80 percent for tax year 2006 and beyond

The new tax act moderately improves this deductibility schedule, with 100 percent deductibility in 2007 and beyond

Year	Deductible percent
1997	40
1998	45
1999	45
2000	50
2001	50
2002	60
2003	80
2004	80
2005	80
2006	90
2007 and after	100