How should a self-employed professional be deducted from health insurance?

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If you are self-employed, you will be informed of the deductible expenses for personal income tax that you can make, but did you know that you can deduct your autonomous medical insurance? Many freelancers only deduct those expenses related to work activity but in the next post from Sanitas Seguro Médico Center we are going to tell you everything you need to know so that you take it into account in your next income statement.

Generic guidelines for deducting autonomous health insurance

All self-employed workers know that a series of expenses can be deducted with respect to professional activity, such as the workers’ payroll, the social security contribution or the establishment where the work activity takes place.

But there are a series of expenses that the tax legislation allows us to include in this bag of expenses to be deducted, such as deducting the health insurance for self-employed . This type of deduction has nothing to do with the work activity carried out by a self-employed person, so it is advisable to inform yourself well.

In the IRPF Law 35/2006 in its article 30.2.5ª it is established that health insurance premiums may be deducted as an expense In the income statement of a self-employed person with a series of conditions and limits that we detail below:

  • Premiums paid for their own coverage as well as those of their spouse and children under 25 years of age living at the same address may be deducted from the self-employed person’s income statement . Those who will not be able to enjoy this deduction are the couples of the self-employed who are not in a matrimonial regime even if they live in the same address.
  • The Law establishes a limit of 500 euros per year for each of the persons mentioned above or 1,500 euros for each of them with a degree of disability .

    To deduct the self-employed health insurance of a person who is self-employed and who decides to take out private health insurance because the functions he performs in his work run a high percentage of risk, in the event that it is questioned whether it can be deducted The self-employed health insurance that you have contracted, you should know that it is possible, as long as you include your wife and two small children when contracting the policy .

    Assuming that the children do not have a disability and live at the same address for the income tax return, they will be counted as 500 euros. Therefore, it is a total of 2000 euros which can be deducted taking into account the previous section.

We are also going to indicate to you in which other situations established within article 30.2 of Personal Income Tax Law 35/2006 in which a person who works on their own is immersed, apart from deducting self-employed health insurance, can benefit or can indicate it. as a deductible expense.

  • In the event that the development of the economic activity affects the dwelling, the self-employed may deduct the percentage resulting from applying 30% to the part of the proportional expenditure of the square meters of the dwelling allocated to the activity with respect to its total surface .

    To calculate what amount can be deducted you have to multiply the total payment of supplies including internet and telephone by 20% which are the meters of the affected home. And the total will be multiplied in turn by 30% which is what corresponds to the deduction.

According to ICEA (Cooperative Research between Insurance Entities and Pension Funds) around 28% of the self-employed have health insurance, so it is advisable to inform yourself well before making the income statement or for future statements since not all people who are self-employed know that they can be deducted from self-employed health insurance, among other things.

What is our health insurance tax treatment?

Focusing on the taxation of our private medical insurance to know how to deduct autonomous medical insurance, it is important to know the following characteristics depending on the territory in which you are:

Implications of the self-employed in Navarra

  • Deductible expense in calculating the net return on economic activity (in direct estimation).
  • Premiums are exempt from personal income tax and deposit up to € 500 person / year (self-employed, spouse and descendants).
  • The amounts that exceed the previous limit will be remuneration in kind subject to personal income tax and payment on account.
  • The full amount of the premium constitutes the basis of the Social Security contribution (if there is an employment relationship).
  • No tax advantage for taxation in objective estimation (modules).

Implications of the self-employed in the Basque Country

  • There is no tax advantage for contracting insurance policies whose policyholder is the self-employed.

Implications of the self-employed in the rest of the common territory

  • The premiums paid with respect to its employees are exempt from personal income tax and deposit up to € 500 person / year and € 1,500 person / year in case of disability.
  • The amounts that exceed the above limits will be remuneration in kind subject to personal income tax and payment on account.
  • The full amount of the premium constitutes the basis of the Social Security contribution (if there is an employment relationship).
  • They do not have a tax advantage for taxation in objective estimation.
  • The health insurance premiums paid by the self-employed with respect to himself, his spouse and children under 25 years of age up to a maximum amount of € 500 per year (€ 1,500 in case of disability) are deductible for him as long as he is taxed in direct estimation.
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