Adjustments - Adjustments for Self-Employed Taxpayers

5 important questions on Adjustments - Adjustments for Self-Employed Taxpayers

What can self-employed individuals deduct regarding health insurance premiums?

Self-employed individuals may deduct all of the health insurance premiums paid for the taxpayer, spouse, and dependents, provided that the plan is set up in the name of the self‑employed individual or the individual's business.
  • The deduction is limited to the amount of the taxpayer's self-employment income.
  • The health insurance premiums are deducted above the line,  rather than as an itemized deduction

Are additional catch-up contributions allowed for taxpayers age 50 or older for SEP IRAs?

No additional catch-up contributions for taxpayers age 50 or older are allowed for SEP IRAs.

What contributions can be made under a SIMPLE IRA plan?

Contributions can be made for the self-employed owner and for qualified employees.
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For a SIMPLE IRA, what additional contribution is allowed in 2026 for taxpayers age 50 or older?

An additional catch-up contribution is allowed in 2026 for taxpayers age 50 or older.

What is the maximum contribution to a solo 401(k) for self-employed taxpayers in 2026?

The maximum contribution to a self-employed taxpayer's solo 401(k) in 2026 is the lesser of:
  • 20 percent of net income from self-employment reduced by the deduction for one-half of self-employment tax; or
  • $72,000.

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