Yes, as long as she's not eligible to be covered under your employer's subsidized plan she could take the self-employed health insurance deduction (SEHID).
Note that it's limited to the net income of the business less all of the other deductions asociated with the business, i.e. the deductible half of SEtax, and any SEP/solo401k/SIMPLE contributions. And you can't include any part that's paid by ACA premium tax credits.
So it's worth considering whether taking SEHID is worth giving up the retirement contributions when there is relatively low business income, not enough to do both, as in this case.
See Form 7206: https://www.irs.gov/forms-pubs/about-form-7206
Note that it's limited to the net income of the business less all of the other deductions asociated with the business, i.e. the deductible half of SEtax, and any SEP/solo401k/SIMPLE contributions. And you can't include any part that's paid by ACA premium tax credits.
So it's worth considering whether taking SEHID is worth giving up the retirement contributions when there is relatively low business income, not enough to do both, as in this case.
See Form 7206: https://www.irs.gov/forms-pubs/about-form-7206
Statistics: Posted by MP123 — Tue Sep 09, 2025 11:28 am — Replies 2 — Views 117