Small Business Tax Credit: Health Insurance

As we all know, this country is lead by the middleclass working individual and the small business class owner. My brother and sister-n-law own their own ceramics business, in Seagrove NC. They have been in business for over six years now, and are currently feeling the effects of the depreciation in the economy. They also know the importance of healthe insurance but know all to well the expense this entails for he and his spouse. However, there are tax breaks (in regards to health insurance) the IRS will issue that you may not know. I informed my brother that he could actually save money by reporting his insurance premiums without having to show it as a itemized deduction:

Health insurance premiums Any health insurance premiums you pay, including some long-term-care premiums based on your age, are potentially deductible. You have to add these, however, to your medical expense pot. Medical expenses have to exceed 7.5% of your adjusted gross income (AGI) before they give you any tax benefit.
But if you're self-employed and not covered by any other employer-paid plan, you can deduct 100% your health insurance premiums "above the line." Above the line means the expense is included in adjusted gross income and doesn't get lumped in with itemized deductions. That means that you not only don't have to exceed the 7.5% floor, you don't even have to itemize!