There is some good news and some bad news when it comes to deducting health insurance premiums if you are self-employed.
The good news is that, under the Affordable Care Act (ACA), you can deduct your health insurance premiums on your federal income taxes, whether you purchase a plan through the Health Insurance Marketplace or directly through an insurance company.
The bad news is that, because the ACA requires all Americans to have health insurance, you will face a tax penalty if you do not have coverage. For 2019, the tax penalty is 2.5% of your yearly income or $695 per adult and $347.50 per child, whichever is greater.
So, while you can deduct your health insurance premiums if you are self-employed, you will still have to pay a tax penalty if you do not have coverage.