How do I deduct my professional malpractice insurance?

[bobwakid]

Using Premiere

[PatriciaV · Accepted solution]

Yes, you may be able to deduct job-related expenses like malpractice insurance premiums.

According to the IRS, deductible insurance premiums include malpractice insurance that covers your personal liability for professional negligence resulting in injury or damage to patients or clients.

For more information on IRS rules for deductible insurance, please see this link.

If you are a self-employed professional, these business expenses will be reported on Schedule C. You will input in TurboTax under Federal Taxes | Business Items | Business Income and Expenses (Sch C)) - see the attached screenshot for help finding this section.

If these are unreimbursed business expenses related to your employment, these premiums would be reported on Schedule A. You will input in TurboTax under Deductions & Credits | Employment Expenses | Job-Related Expenses (on Schedule A - Itemized Deductions) - see second screenshot below.

[FrankF1]

The correct link for the IRS rules for deductible insurance expense is <a rel="nofollow" target="_blank" href="https://www.irs.gov/publications/p535/ch06.html">https://www.irs.gov/publications/p535/ch06.html</a>

[PatriciaV]

Thank you. Link is now fixed.

[Vanessa A]

If you are not Self-Employed your medical malpractice insurance is no longer deductible under the tax law changes that took effect last year.  Employee business expenses were eliminated under the new laws. 

If you are Self-Employed, you will need to upgrade to TurboTax Home and Business or Self-Employed and follow the path to answer the questions regarding self-employed income and expenses.  This will allow you to enter your malpractice insurance.