Sole proprietors are permitted tax deductions for health costs paid from their earnings in the amount of?

Sole proprietors are allowed to deduct 100% of their health insurance premiums from their taxable income. This full deduction reflects the intent of the tax code to provide self-employed individuals with a tax advantage equivalent to that available to employees who receive employer-sponsored health insurance. By allowing a deduction of 100% of health costs, the tax system aims to help small business owners and sole proprietors afford health care coverage, thereby encouraging them to invest in their health insurance needs.

This deduction applies to premiums for a range of health insurance products, including medical, dental, and long-term care insurance, as long as the taxpayer is not eligible to participate in another employer's health plan. In this way, the tax structure recognizes the financial burdens faced by sole proprietors while promoting broader access to health coverage.