Health Insurance for Self-Employed People in West Virginia

Your Health Insurance Options as a Self-Employed Person

Self-employed individuals in West Virginia have several health insurance options:

• ACA marketplace plans (HealthCare.gov) — often subsidized based on income
• Spouse's employer plan — if your spouse has employer coverage, joining their plan may be the most affordable option
• Professional association plans — some trade and professional associations offer group health insurance
• Health sharing ministries — not insurance, but an alternative for some people
• Short-term health insurance — limited coverage for gaps between other coverage

ACA Marketplace Plans for the Self-Employed

The ACA marketplace is typically the best option for self-employed individuals. Your net self-employment income determines your eligibility for premium tax credits. If your income fluctuates, you can estimate your annual income when applying and reconcile at tax time. The self-employed health insurance deduction allows you to deduct 100% of your health insurance premiums from your federal income tax.

The Self-Employed Health Insurance Deduction

Self-employed individuals can deduct 100% of health insurance premiums paid for themselves, their spouse, and their dependents from their federal income tax. This deduction is taken on Schedule 1 of Form 1040 and reduces your adjusted gross income — which in turn affects your eligibility for ACA subsidies. It is important to work with a tax professional to optimize this deduction.

Estimating Your Income for ACA Subsidies

ACA subsidies are based on your projected annual income. For self-employed individuals with variable income, this can be challenging. If you underestimate your income and receive more subsidy than you are entitled to, you will repay the difference at tax time. If you overestimate, you will receive a tax credit. It is better to estimate conservatively to avoid a tax bill.

Health Insurance for Small Business Owners with Employees

If you have employees, you may be eligible for the Small Business Health Care Tax Credit, which can offset up to 50% of the premiums you pay for employee coverage. Small businesses with fewer than 25 full-time equivalent employees earning an average of less than $56,000 per year may qualify. AG Insurance can help you evaluate group health insurance options for your small business.

Protecting Your Business with Disability Insurance

For self-employed individuals, disability insurance is as important as health insurance. If you are unable to work due to illness or injury, disability insurance replaces a portion of your income. Without it, a serious health event could threaten both your personal finances and your business. AG Insurance can help you evaluate disability insurance options.