When you work for yourself, you're also your own benefits department. Realtors, consultants, contractors, creators and gig workers across Florida face the same question: what's the best way to cover myself, and my family, without an employer plan?
Your main options
- Individual or family ACA plan. Guaranteed issue, with premium tax credits for eligible incomes. A strong choice if you have health conditions or variable, moderate income.
- Private PPO plan. Medically underwritten, priced on your health profile, and not tied to income. Often worth comparing if you're healthy and earn too much for tax credits.
- Group coverage through your business. If you have at least one eligible employee who isn't your spouse, a small group plan may be possible.
- COBRA. If you just left a job, COBRA keeps your old plan, typically for up to 18 months, at full cost plus up to 2%.
The self-employed health insurance deduction
If you're self-employed and your business has a net profit, you may be able to deduct the premiums you pay for medical, dental and qualified long-term care coverage for yourself, your spouse and your dependents. The deduction is taken on Schedule 1 of your federal return, figured on IRS Form 7206, so you don't need to itemize.
- The deduction can't exceed your business's net profit.
- You can't claim months when you were eligible for an employer-subsidized plan through your own or your spouse's job.
- Florida has no state income tax, so the benefit is on your federal return.
Your CPA can confirm how it applies to you. We help you choose a plan that fits it.
Variable income? Think about which plan type fits
ACA tax credits are based on your estimated income for the year, and you reconcile them when you file. If your income swings, you may owe some back, or get more. Private plans don't use income at all, which some self-employed clients prefer for predictability.
How to compare
- List your doctors, prescriptions and any planned care.
- Compare the full yearly cost: premium plus expected out-of-pocket, not just the monthly price.
- Check the network type. If you travel for work, ask about national PPO access.
- Ask your CPA how the deduction affects your taxes.
See individual health insurance, private PPO plans, and small business health benefits.
Sources
- IRS: About Form 7206, Self-Employed Health Insurance Deduction
- U.S. Department of Labor: COBRA continuation coverage
General information only, not tax, legal or medical advice. Plan availability, benefits, networks and pricing vary by carrier, state, county and eligibility. Stratton Advisory Group is an independent agency and is not affiliated with any insurance carrier or government agency.