If you are self-employed and pay for your own health insurance coverage, Missouri may allow you to claim the Self-Employed Health Insurance Credit. This credit is claimed using Form MO-SHC, Self-Employed Health Insurance Tax Credit, and can help reduce your Missouri income tax liability. The Missouri return includes a screen for entering the information needed to calculate the credit.
What Is the Missouri Self-Employed Health Insurance Credit?
The Self-Employed Health Insurance Credit (Form MO-SHC) is available to qualifying self-employed individuals who pay health insurance premiums for themselves, their spouse, and eligible dependents. The credit is based on health insurance premiums paid during the tax year and is claimed as a Missouri miscellaneous tax credit. Form MO-SHC is the supporting form used to calculate and claim the credit.
The credit generally requires you to:
- Be self-employed during the tax year.
- Pay qualifying health insurance premiums.
- Reduce eligible premiums by any federal self-employed health insurance deduction claimed on the federal return.
- Calculate the allowable Missouri credit on Form MO-SHC before claiming the credit on the Missouri return.
On the Missouri Self-employed Health Insurance Credit screen, you may be asked to enter:
- Adjustment to Insurance Premiums Included in AGI – The amount of insurance premiums already deducted in federal adjusted gross income that must be considered when calculating the Missouri credit.
- Spouse Portion of Credit – If filing jointly, the portion of the credit attributable to the spouse.
How Do I Enter the Self-Employed Health Insurance Credit?
- From the Missouri return, navigate to the Credits section
- Select Miscellaneous Tax Credits (MO-TC)
- Select Self-employed Health Ins Credit
- Review the qualifying health insurance premiums paid during the tax year.
- Enter the Adjustment to Insurance Premiums Included in AGI if applicable.
- Enter the Spouse Portion of Credit if filing a joint return and the credit must be allocated between spouses.
- Review the calculated credit amount.
- Continue through the Missouri return.
Helpful Tips
- Keep records of all health insurance premiums paid during the tax year.
- Use Form MO-SHC to calculate the credit before entering the information in the return.
- Premiums used to claim the Missouri credit may need to be reduced by amounts already deducted for federal tax purposes.
- If filing jointly, allocate the credit appropriately between taxpayer and spouse when required.
- Supporting documentation should be retained with your tax records.
Missouri Instructions
The Missouri Department of Revenue identifies the Self-Employed Health Insurance Credit (SHC) as a miscellaneous tax credit reported through Form MO-TC and supported by Form MO-SHC.
For complete eligibility requirements, credit calculations, and filing instructions, see the Missouri Department of Revenue's Form MO-SHC, Self-Employed Health Insurance Tax Credit instructions:
Program Pathway
- State Section
- Edit the Missouri return
- Credits
- Miscellaneous Tax Credits (MO-TC)
- Self-employed Health Ins Credit