When can premiums for an individually owned health insurance policy be deducted from income tax?

The appropriate situation for deducting premiums for an individually owned health insurance policy aligns with the requirement that unreimbursed medical expenses must exceed 7.5% of the taxpayer's adjusted gross income (AGI). This is a provision outlined in tax regulations, which allows individuals to deduct qualifying medical expenses that surpass this threshold.

When taxpayers have significant medical expenses, the portion exceeding 7.5% of their AGI can be eligible for deduction on their income taxes, creating tax relief for those who have incurred high medical costs. Health insurance premiums are considered part of these unreimbursed medical expenses. Therefore, if an individual's total qualified medical expenses (including health insurance premiums) total more than 7.5% of their AGI, they can deduct that excess amount from their taxable income, which in turn can reduce the overall tax burden.

The other options do not align with the tax deduction criteria for health insurance premiums as clearly as this one does. For instance, being self-employed may allow for specific deductions of health insurance premiums, but that would primarily relate to self-employment tax and not the general deduction available for individuals. The thresholds and conditions of unreimbursed expenses are the key elements considered in determining deductible amounts.