Sole Proprietor
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 Insurance premiums 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
2016
Applicable Percentage of TQ LTCI Premium Deductible as Self-Employed Health Insurance
100%
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 attained before the end of the taxable year | Amount allowed as a medical expense in | ||
| 2017 | 2018 | ||
| 40 or under | $410 | $420 | |
| 41-50 | $770 | $780 | |
| 51-60 | $1,530 | $1,560 | |
| 61-70 | $4,090 | $4,160 | |
| 71 or older | $5,110 | $5,200 | |
Source: AALTCI.org please visit this link for more information.
