What percentage of premiums can Mary deduct from her taxes, since she is a sole proprietor with a family health plan?

As a sole proprietor, Mary can deduct 100% of her health insurance premiums from her taxable income. This deductible amount applies to premiums paid for a health insurance policy that covers herself, her spouse, and her dependents. The allowance for full deductibility aims to provide some equivalence for self-employed individuals to the benefits that employees receive through employer-sponsored insurance plans, making it an important tax benefit for solopreneurs.

This full deductibility is vital for small business owners, as it helps reduce their overall taxable income, thus lowering their tax liability. It's crucial for Mary to ensure that the health insurance plan meets specific criteria established by the IRS for her to take full advantage of this deduction.