Health Insurance Deduction and Self Employment Tax

IRS reminds the self employed that for 2010, the health insurance deduction will also reduce the self employment tax.

Document Excerpt

Health Insurance Deduction Reduces Self Employment Tax  In 2010, eligible self-employed individuals can use the self-employed health insurance deduction to reduce their social security self-employment tax liability in addition to their income tax liability. As in the past, eligible taxpayers claim this deduction on Form 1040 Line 29. But in 2010, eligible taxpayers can also enter this amount on Schedule SE Line 3, thus reducing net earnings from self-employment subject to the 15.3 percent social security self-employment tax.

Link http://www.irs.gov/newsroom/article/0,,id=120227,00.html

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