Jan 18, 2011
A tax deduction you probably don’t want to miss
18 Jan 2011
Posted by Andrew Kantor
In case you’re one of those people who likes to save money on your taxes, there’s a deduction lurking in your 2010 paperwork that Realtors and other independent contractors ought to know about.
If you pay for health insurance, you (should) already know that you can deduct the cost of your premiums from your income tax — that’s on line 29 of the 1040. But it can also be deducted from the net income you report for Social Security and Medicare self-employment tax.
The place to take this deduction is on line 3 of Schedule SE (self-employment). Here are the IRS’s instructions (sorry I couldn’t give the plain text):
(Click here to view the full PDF; this section is on page 3.)