A few months ago, in response to a question from a reader, I discussed the deduction of health care premiums. I received many responses, and several readers raised issues related to this deduction.

Many self-employed individuals were unaware of this deduction or misunderstood how to take it. So in this column, I will provide more details.

Most individuals no longer itemize and are under the impression that because they use the standard deduction, they no longer can deduct any health care expenses on their tax return. However, self-employed individuals are allowed to deduct premiums for health care.

These deductions are not included on Schedule C. They must be included on Schedule 1, Form 1040.

All premiums you pay for medical and dental insurance are deductible. Premiums for Medicare Parts B, C and D are allowable deductions. Long-term care premiums that are IRS-tax qualified are deductible.

You can also deduct premiums paid for your spouse, dependents and non-dependents under age 27.

There are deduction limits associated with premiums for long-term health care insurance. Following are the limits for 2023 and 2024.

• Age 40 and under: $480 (2023); $470 (2024)

• Age 41-50: $890 (2023); $470 (2024)

• Age 51-60: $1,790 (2023); $1,760 (2024)

• Age 61-70: $4,770 (2023); $4,710 (2024)

• Over age 70: $5,790 (2023); $5,880 (2024)

You are not allowed to use this deduction if you or your spouse would be eligible for health insurance coverage offered by your current or former employer. Only premiums are allowed; other health care expenses that would be allowed if you itemize would not be allowable as deductions.

These deductions are reported on Schedule 1, Form 1040, Part 2, line 17. Because you are not allowed to deduct health care premiums on Schedule C, the net profit you report on line 31 of Schedule C will not include your health care premium expenses.

Reporting net profit: The net profit from your self-employed income is reported on Schedule 1, Form 1040 Part 1, line 3.

Roth contribution: You are allowed to make a Roth IRA contribution if you are reporting a net profit on Part 1, line 3 on your tax return. There are many advantages to using Roth IRAs as compared to a traditional IRA.

So, if you do not need all of the net profit associated with the earned income you reported on line 3, I recommend you consider making a Roth contribution.

Even if you are under age 59 1/2, you can withdraw funds you contributed to the Roth IRA account without penalty.

As long as you do not withdraw interest earned on the contribution, you can withdraw the amount you contribute to the Roth account without penalty. You are allowed to withdraw interest from the Roth account after age 59 1/2 as long as the account has been opened for at least five years.

Bottom line: If you have earnings from your self-employed work, even if you have retired from previous employment, and you use the standard deduction, you are still allowed to deduct health care premiums on your tax return.

There is no disadvantage in doing so.

If you don’t need all of the income from your self-employment for normal living expenses, you should consider saving some or all of this income in a Roth IRA account.

Elliot Raphaelson welcomes your questions and comments at raphelliot@gmail.com.