Self employed Long term care insurance?

[Possi]

I have been studying TTB message board, and as usual, experienced another "epiphany" regarding Self Employed Health Insurance.

As a self employed person who is now paying my own COBRA (expensive) health insurance, I can lump my long-term care insurance into that deduction? Did I read that right?

My corp makes the payments for cobra and includes it in my W2. Now, I will set it up so that it does the same for my LTC insurance!

Always learning...

[Nashville]

Don't Think So

Don't think Long-Term Care premiums is a qualified medical expense for deducting as Self-Employed Medical Insurance.

However, I think I am correct that if you establish a Medical Savings Account, and pay the LTC insurance out of the MSA, that would be a valid deduction in the "Adjustments" section of the 1040, and result in the same tax savings.

[Possi]

let me find the link...

I better read it again.. I'll get back to you when and if I find it, so I can eat crow with the proper utensils!

=)

[Possi]

see"1040 Schedule C long term care insurance

Let's jump this discussion back to "1040 Schedule C long term care insurance" originally posted by Jon....

I better read it again.. I'll get back to you when and if I find it, so I can eat crow with the proper utensils!

=)

[Lion]

Limits

Don't forget to take into account the appropriate limits on the deductible amount of LTC premiums. If self-employed, it's deductible. I think that includes partners, but don't know about shareholder employees of an s-corp.

[Possi]

will do

I'll check on it before I start the process of paying it through the corp and including it in my W2.
Thanks for the information!

[LCP]

I'll check on it before I start the process of paying it through the corp and including it in my W2.
Thanks for the information!

What did you decide?

[Possi]

All on Corp

I pay it all through the corp, health insurance and LTCare insurance, and include it in Bx 1 wages.