Small Business Health Insurance Tax Deductions in Glen Burnie, MD

Updated July 2026 · MarylandPlanFinder.com — Licensed Health Insurance Producer (NPN #21249133)

Self-employed individuals in Glen Burnie can deduct 100% of health insurance premiums as an above-the-line deduction if not eligible for an employer-sponsored plan.
Maryland Health Connection offers a Small Business Health Options Program (SHOP) for eligible employers (fewer than 25 FTEs) to access the Small Business Health Care Tax Credit, covering up to 50% of premium contributions.
In 2026, 4 carriers — including CareFirst BlueChoice and Wellpoint — offer a range of HMO, PPO, and EPO plans through Rating Area 1, which covers Glen Burnie.
Individuals with income up to 138% of the Federal Poverty Level may qualify for Maryland Medicaid (HealthChoice), offering comprehensive, low-cost coverage.

For small business owners and self-employed individuals in Glen Burnie, navigating health insurance can be complex, but significant tax advantages exist. You can generally deduct 100% of your health insurance premiums, including those for your spouse and dependents, directly from your gross income if you are not eligible to participate in an employer-sponsored health plan. This "above-the-line" deduction reduces your adjusted gross income (AGI), potentially lowering your overall tax liability. Additionally, small businesses in Maryland may qualify for the Small Business Health Care Tax Credit if they offer coverage through the state's marketplace.

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Who Qualifies for the Self-Employed Health Insurance Deduction?

The self-employed health insurance deduction is a crucial tax benefit for those who don't receive health coverage through a traditional employer. You are generally eligible to deduct health insurance premiums if you meet the following criteria:

You are self-employed, meaning you have net earnings from self-employment. This includes sole proprietors, partners in a partnership, and more-than-2% shareholders in an S corporation.
You are not eligible to participate in any employer-sponsored health plan, either through your own employment or through your spouse's employment. This "not eligible" rule applies for any month you could have participated in such a plan.
You pay for the health insurance premiums yourself.

This deduction applies to premiums paid for medical, dental, and qualified long-term care insurance policies. It is taken on Schedule 1 (Form 1040) and reduces your AGI, which can be more advantageous than an itemized deduction. For residents of Glen Burnie, with a median income of $88,280 per U.S. Census Bureau ACS 2024 5-year estimates, this deduction can provide substantial savings, especially when factoring in the cost of comprehensive health coverage.

Understanding the Small Business Health Care Tax Credit in Maryland

Maryland businesses may also qualify for the Small Business Health Care Tax Credit, designed to help small employers afford health insurance for their employees. This credit is particularly relevant for businesses in Glen Burnie that are looking to provide benefits. To be eligible, your business must:

Have fewer than 25 full-time equivalent (FTE) employees.
Pay average annual wages of less than $60,000 per FTE.
Contribute at least 50% of the premium cost for single (not family) health insurance coverage for each employee.
Purchase coverage through the Small Business Health Options Program (SHOP) marketplace, which is part of the Maryland Health Connection.

The maximum credit is 50% of the employer's contribution to employee premiums (35% for tax-exempt organizations). This credit can significantly reduce the cost of offering health benefits, making it more feasible for small businesses to attract and retain talent in Anne Arundel County, where the median income is $124,911 per U.S. Census Bureau ACS 2024 5-year estimates.

Health Insurance Options for Small Businesses and Self-Employed in Glen Burnie

For self-employed individuals and small business owners in Glen Burnie, Maryland Health Connection is the state-based marketplace where individuals can purchase subsidized health insurance plans. In Maryland, shoppers can choose from HMO, PPO, and EPO plan structures, offering flexibility in network access and cost.

Individual and Family Plans on Maryland Health Connection

If you're self-employed and purchasing coverage for yourself and your family, you'll use the individual marketplace. Eligibility for premium tax credits (subsidies) depends on your household income relative to the Federal Poverty Level (FPL).

Household Size	100% FPL (2025 Est.)	150% FPL (2025 Est.)	250% FPL (2025 Est.)	400% FPL (2025 Est.)
1	$15,060	$22,590	$37,650	$60,240
2	$20,440	$30,660	$51,100	$81,760
3	$25,820	$38,730	$64,550	$103,280
4	$31,200	$46,800	$78,000	$124,800

Note: FPL figures are estimates for 2025 and are subject to change by HHS. Maryland Medicaid (HealthChoice): Adults with income up to 138% FPL may qualify for Maryland Medicaid (HealthChoice), which provides comprehensive health coverage with minimal or no out-of-pocket costs. Maryland expanded Medicaid in 2014. Premium Tax Credits: Individuals and families with incomes between 100% and 400% FPL (or above 400% FPL due to enhanced subsidies) may qualify for premium tax credits to lower their monthly insurance premiums. Cost-Sharing Reductions (CSRs): Those with incomes up to 250% FPL may also qualify for CSRs, which reduce deductibles, copayments, and out-of-pocket maximums, making Silver plans particularly valuable.

SHOP Plans for Small Employers

Small employers can use the SHOP marketplace through Maryland Health Connection to offer group health insurance. This allows you to select plans from various carriers and potentially qualify for the Small Business Health Care Tax Credit. Offering group coverage can be a significant advantage for businesses in Glen Burnie, with a population of 72,590, especially given the county's low uninsured rate of 4.7% (per U.S. Census Bureau ACS 2024 5-year estimates).

Health Insurance Carriers in Glen Burnie

In 2026, 4 carriers offer marketplace plans in Rating Area 1, which covers Allegany, Anne Arundel, Baltimore, Baltimore, Calvert, Caroline, Carroll, Cecil, Charles, Dorchester, Frederick, Garrett, Harford, Howard, Kent, Montgomery, Prince George's, Queen Anne's, Somerset, St. Mary's, Talbot, Washington, Wicomico, Worcester counties, including Glen Burnie. These carriers include:

CareFirst BlueChoice
CareFirst of Maryland
Optimum Choice
Wellpoint

These carriers provide a range of plan types, including Health Maintenance Organizations (HMOs), Preferred Provider Organizations (PPOs), and Exclusive Provider Organizations (EPOs), giving residents ample choice for their healthcare needs. Local healthcare facilities such as University of MD Baltimore Washington Medical Center in Glen Burnie and Luminis Health Anne Arundel Medical Center, Inc in Annapolis are key components of the healthcare landscape in Anne Arundel County.

Making the Right Choice for Your Small Business

Deciding on the best health insurance strategy involves balancing cost, coverage, and tax implications.

If you are self-employed and buying individual coverage: Focus on finding a plan through Maryland Health Connection that fits your budget and health needs. Remember to factor in the self-employed health insurance deduction when estimating your true cost. Explore Silver plans if your income is below 250% FPL to maximize Cost-Sharing Reductions.
If you are a small employer considering offering group coverage: Investigate the SHOP marketplace through Maryland Health Connection. Evaluate your eligibility for the Small Business Health Care Tax Credit, which can significantly offset your costs. Compare plan options and employee contributions to find a sustainable solution.
If your income is below 138% FPL: You may qualify for Maryland Medicaid (HealthChoice). This can provide comprehensive coverage at little to no cost, freeing up resources for your business.

A licensed health insurance producer can help you navigate these options, explain the nuances of tax deductions and credits, and find plans that align with your specific situation without any additional cost to you.

Frequently Asked Questions

Can I deduct health insurance premiums as a small business owner in Glen Burnie, MD?

Yes, if you are a self-employed individual or a small business owner (sole proprietor, partner, or more than 2% S corporation shareholder) and not eligible to participate in an employer-sponsored health plan, you can generally deduct health insurance premiums paid for yourself, your spouse, and your dependents. This is an above-the-line deduction, meaning it reduces your adjusted gross income (AGI).

What types of health insurance plans qualify for the self-employed health insurance deduction?

Most types of health insurance plans qualify, including those purchased through the Maryland Health Connection marketplace, private plans, and Medicare premiums (Parts B and D, and Medigap). Long-term care insurance premiums may also be deductible, subject to age-based limits set by the IRS. Dental and vision premiums also qualify if they are part of a comprehensive health plan or a standalone policy.

Is the Small Business Health Care Tax Credit available in Maryland?

The Small Business Health Care Tax Credit is available to eligible small employers (fewer than 25 full-time equivalent employees, average annual wages less than $60,000) who pay at least 50% of their employees' health insurance premiums. To qualify, you must purchase coverage through the Small Business Health Options Program (SHOP) marketplace, which is part of the Maryland Health Connection. The credit can cover up to 50% of your contribution to employee premiums.

Can I deduct health savings account (HSA) contributions?

Yes, contributions you make to a Health Savings Account (HSA) are tax-deductible. HSAs are available to individuals enrolled in a High-Deductible Health Plan (HDHP). The funds in an HSA grow tax-free, and qualified withdrawals for medical expenses are also tax-free, offering a triple tax advantage.