Long Term Care Insurance Premiums for Self Employed

[David]

Several financial advisors have told their clients that an S Corp owner can write off their LTC insurance premiums.

I have researched LTC insurance premiums and don't see anything that gives S Corp owners any special treatment that is different from other self employed taxpayers.

Is there something I am missing?

Aren't LTC insurance premiums paid by self employed (Sch C, 1065, and 1120S) deducted the same as health insurance premiums? Does the LTC plan have to be in the name of the company or can their be a "reimbursement" arrangement?

Thanks.

[Guest Taxed]

Self-employed medical premium goes on line 29 of form 1040.

LTC premium subject to the max allowed by age goes on line 1 of Sch A along with other allowable unreimbursed medical out of pocket expenses.

[Lee B]

According the Professional Edition of J K Lasser, Qualified Long Term Care Insurance is treated the same as

regular health insurance premiums with respect to being deductible on Line 29 for the self employed, including

S Corporation owners. There is nothing special. For S Corp owners it has to meet the same basic

requirements and is handled the same way as regular health insurance premiums.

[Guest Taxed]

You are correct, for self-employed the LTC premiums subject to the max. by age is on line 29 form 1040 and not sch A line 1.