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Generally, as a 1099 contractor, you can't deduct medical expenses like doctor co-pays, prescription costs, and other medical fees as business expenses. These are considered personal expenses, not business expenses. However, you may be able to deduct them on your personal tax return if you itemize deductions and your total medical expenses exceed 7.5% of your adjusted gross income. This includes payments for the diagnosis, cure, mitigation, treatment, or prevention of disease, or payments for treatments affecting any structure or function of the body.

For health insurance premiums, there's a special deduction for self-employed individuals which allows you to deduct 100% of your health insurance premiums on your personal tax return, including premiums for your spouse, dependents, and children under 27. This is an adjustment to income and doesn't require itemizing. But remember, this deduction can't be more than your net profit from the business.