As a result of a recent jobs act, the IRS is allowing a one year change in how health insurance premiums paid by the self-employed are deducted. And, it's going to save the self-employed lots of money.

Before the change, the self-employed, who pay the full freight of payroll taxes with no employer to pay half, had to deduct their health insurance premiums after the payroll taxes were calculated on their income. But in 2011, the deduction can be taken before the payroll taxes are calculated. So, in 2011 the payroll taxes can be calculated against a smaller income number

It's an obscure provision in the new law that some accountants might not be aware of. And, it only lasts one year unless Congress decides to extend it.

So, if you're self-employed (and I suppose a large number of folks here are) then make sure your accountant knows about this.

LF