Level 6
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Deductions & credits

I see a different TT discussion for 2018:  https://turbotax.intuit.com/tax-tips/home-ownership/deducting-health-insurance-premiums-if-youre-sel...  This one says: "

most self-employed taxpayers can deduct health insurance premiums, including age-based premiums for long-term care coverage. Write-offs are available whether or not you itemize, if you meet the requirements.

If you are self-employed, you may be eligible to deduct premiums that you pay for medical, dental and qualifying long-term care insurance coverage for yourself, your spouse and your dependents. This health insurance write-off is entered on page 1 of Form 1040, which means you benefit whether or not you itemize your deductions.

Unlike an itemized deduction, this deduction treatment is beneficial because it lowers your adjusted gross income (AGI). Having lower AGI can reduce the odds that you’ll be affected by unfavorable phase-out rules that can cut back or eliminate various tax breaks. Keep in mind that this deduction treatment also means you can’t deduct the premiums when you calculate your self-employment tax liability."

 

When I look at the form view in TT I don't see where the deduction is coming in but my tax drops about $2K when I enter the LTC premiums.  I would be comfortable just taking the drop and see how I fare but I am worried that I am missing a simple gotcha.  As I understand this, the deduction does not apply if you get a subsidized health plan (which we do) but the wording in TT addresses health insurance and/or long term care.  Our long term care is paid by check, not an employer program.  I looked at IRS Publication 535 which covers this but it left me confused.  It is clear that to deduct health insurance premiums the plan must be "established under the business."  We don't qualify.  But after that it address Medicare Part B premiums and Long Term Care premiums.  To me these appear to be separate matters but the language is confusing.  What ever happened to the government efforts to use plain language? 🙂   Pub 535 is here:  https://www.irs.gov/pub/irs-pdf/p535.pdf