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High cost of health insurance got your small-business budget in a bunch? AgriPlan/BizPlan, a tax reduction service based in Adel, Iowa, estimates that in 1995, 40,000 self-employed business owners each saved an additional $1,800 in taxes through a provision in the Internal Revenue tax code.

The deduction, under IRS Tax Code Section 105, applies to married, self-employed taxpayers who formally hire their spouses as employees. If your spouse receives a salary for services performed for your business--even if he or she holds another job elsewhere--you can deduct 100 percent of your family's health-insurance premiums and non-insured medical expenses.

But be forewarned: the deduction is recommended for businesses with three or fewer employees, because the law requires employers to include all employees in the plan. For businesses with more than three employees, the cost of including them all may outweigh the savings benefits of the deduction.