Are You Missing Out on Health Insurance Deductions? Common Tax Mistakes for Creators & Small Business Owners

CPA for YouTubers, Creators, Online Sellers & Medical Professionals in Los Angeles

If you’re running your own practice or creative business, you know self-employment comes with perks — and headaches.

One of the biggest headaches? Paying for your own health insurance.

The good news: if you qualify, you may be able to deduct 100% of your health insurance premiums — but only if you do it right.

At Velin & Associates, Inc, we see too many creators, online commerce sellers, and medical professionals miss this deduction — or make filing mistakes that cost them thousands.

How the Self-Employed Health Insurance Deduction Works

If you’re self-employed and pay for your own health insurance — for yourself, your spouse, and your dependents — you may be able to deduct those premiums directly from your taxable income.

This is not an itemized deduction — it reduces your adjusted gross income (AGI) dollar for dollar.

Where Many Creators Go Wrong

1️⃣ Not Claiming It at All

Many new creators or small business owners don’t realize they’re eligible. If you pay for health insurance out of pocket, don’t leave it on the table!

Example:
A YouTuber earning $80,000 from brand deals pays $6,000 a year for a private health plan but doesn’t claim it. That’s $6,000 they could have used to reduce their taxable income.

2️⃣ Mixing Business & Personal Accounts

Many online sellers pay health insurance premiums from their personal accounts but forget to track or document them properly.

Example:
A Shopify store owner pays health premiums with a personal credit card but never tells their CPA — so the deduction is missed entirely.

3️⃣ Not Knowing the Rules

To claim this deduction, your business must show a net profit — you can’t claim it if your business runs at a loss for the year.

And if you or your spouse are eligible for an employer-sponsored plan, you can’t double-dip.

Why This Matters

This deduction can reduce both income tax and self-employment tax — huge for self-employed people like TikTokers, Amazon sellers, filmmakers, or dentists who pay both sides.

🚫 Other Health Insurance Tax Mistakes

• Double-Counting Premiums: Some taxpayers mistakenly deduct the same premiums as an adjustment to income and as a medical expense. That’s not allowed.
• Missing HSAs: If you have a High Deductible Health Plan (HDHP), you may also be eligible for a Health Savings Account (HSA) — another major tax saver many overlook.

Real-Life Scenarios:

1. What would you do if you’re a filmmaker directing freelance commercials, earning $100,000, and paying $7,200 for your own health plan?
   
   If you don’t deduct it, you’re paying taxes on $100,000 instead of $92,800.
2. What would you do if you’re a Shopify store owner who grows from $50,000 to $120,000 in sales, pays $5,500 in premiums, but doesn’t track them?
   
   That’s $5,500 lost in tax savings.
3. What would you do if you’re a dentist running a small practice, paying premiums for yourself and your spouse?
   
   If you fail to separate business profit properly, you risk missing this benefit — or worse, claiming it incorrectly.

How to Do It Right

✔️ Keep clear records of premiums paid.
✔️ Pay from a business account when possible.
✔️ Work with a CPA who understands creators, Shopify stores, Amazon businesses, and medical practices — not every CPA does.
✔️ Always ask: Are you maximizing my health insurance deduction this year?

Don’t Overpay — Get Expert Help

At Velin & Associates, Inc, we help YouTubers, TikTokers, filmmakers, Shopify and Amazon sellers, doctors, and dentists across Los Angeles pay less — legally.

Whether you need a CPA for Creators, a Shopify Store CPA, or a Dentist CPA, we’ll make sure you claim every dollar you’re entitled to.

For more information about our services, please visit our website.

Velin & Associates, Inc

8159 Santa Monica Blvd STE 198/200 West Hollywood, CA 90046
323-902-1000
dmitriy@losangelescpa.org