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|