I am self-employed. Can I deduct my long term care insurance premiums?

Yes. Self-employed individuals – including sole proprietors, partners, and individuals who hold more than 2% of the shares of a subchapter S corporation – can deduct “eligible premiums” paid for qualified long term care (LTC) insurance plans as a business expense. As shown in the table below, LTC insurance premiums eligible for deduction are subject to certain age-based limits that are adjusted annually based on increases in the medical care component of the Consumer Price Index.

Age Before Close of Tax Year Premium Deduction limit for
2009 Tax Year 2010 Tax Year
40 or younger $320 $330
41 to 50 $600 $620
51 to 60 $1,190 $1,230
61 to 70 $3,180 $3,290
71 or older $3,980 $4,110