Self-Employed Health Insurance (SHC) Tax Credit

Purpose

Provides a tax credit for self-employed taxpayer, who is otherwise ineligible for the federal income tax health insurance deduction and have health insurance payments that are included in their federal adjusted gross income.

Eligible Applicants

Beginning on January 1, 2008

Self-Employed taxpayers that are ineligible for the federal income tax health insurance deduction under Section 162 of the federal internal revenue code shall be entitled to a credit for their federal tax liability incurred from the health insurance payments that were included in their federal adjusted gross income.

Beginning on January 1, 2022

Self-Employed taxpayers that are ineligible for the federal income tax health insurance deduction under Section 162 of the federal internal revenue code shall be entitled to a credit for their federal tax liability incurred from the health insurance payments that were included in their federal adjusted gross income.

Self-employed taxpayers with a Missouri income tax liability, before any other tax credits, of less than $3,000.

Eligible Use of Tax Credit

This credit may be applied to the individual income tax incurred under the provisions of Chapter 143, RSMo, excluding state withholding tax.

This credit is nonrefundable, nontransferable, and shall not be carried back or forward to any other tax year. A self-employed taxpayer shall not claim both a tax credit under this section and a subtraction under section 143.113 for the same tax year.

Procedures to Claim the Credit

To claim the Self-employed Health Insurance credit, each self-employed individual must complete and attach Forms MO-SHC and MO-TC to their individual income tax return.

Resources

Contact

Missouri Department of Revenue, Taxation Division.