Deductibility of Employer-Paid Premiums
Sole Proprietors who purchase and pay for Tax-Qualified Long-Term Care Insurancepolicies for themselves, their spouses and their tax dependents may claim a deduction for the premiums paid as medical care expenses (IRC Sec. 162(l)(1)(A) and Sec. 213).
Prior to tax year 2003, only a percentage of the eligible Tax-Qualified Long-Term Care Insurancepremiums paid by a self-employed individual were deductible as medical care expenses. However in tax year 2003 and thereafter, the full amount of the Tax-Qualified Long-Term Care Insurance premiums paid by the self-employed individual may be deducted (IRC Sec. 162(l)(1)(B). See the following table for more information.
|Tax Year||Applicable Percentage of TQ LTCI Premium
Deductible as Self-Employed Health Insurance
Further, as in the case of individual taxpayers, the amount of the Tax-Qualified Long-Term Care Insurance premiums that a self-employed individual may deduct as Self-Employed Health Insurance is subject to the following dollar limits.
|Age||Eligible Premium 2016 Limit||Eligible Premium 2015 Limit|
|40 and Younger||$390||$380|
|41 - 50||$730||$710|
|51 - 60||$1,460||$1,430|
|61 - 70||$3,900||$3,800|
|71 and Older||$4,870||$4,750|
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