Long term care insurance premium cost not included in Sched C but instead is on Form 1040

[psinca]

I don't understand why my LTC health insurance costs [below the maximum for age and less than SE business profit] is not included on Schedule C. In TurboTax Home and Business it says: "these deductions are figured as part of your Form 1050, not as part of Schedule C." As such, the deductions do not reduce my taxable SE income.  I am covered under my spouse's employer's healthcare plan but that plan does not include long term care insurance. Previous years did put the LTC premium deduction on Schedule C. Help!

[BillM223]

The health insurance deduction for the self-employed has not been on Schedule C for many years. To quote HealthInsurance.org,

Congress implemented a 25% deduction for self-employed health insurance premiums in 1987 and made it...

There is nothing stopping you from manually entering health insurance premiums on your Schedule C, but that isn't where it belongs. The issue is that the deductible part of the self-employment tax, contributions to SEP, SIMPLE and qualified plans, and the self-employed health insurance deduction all interact with each other, so you'll want to properly label these amounts, lest you get a letter from the IRS.

[pcatful]

I have the same problem. Tubo-Tax has a place under Self-employed expenses specifically to include the Long term Health insurance. We entered it there last year. And also this year. So it is a pointless entry?

But when you look at itemized expenses, it is under health costs. This could change whether you should itemize deductions.

[pcatful]

* that's long term care insurance.

[AnnetteB6]

Entering your long term care insurance premiums under the Schedule C expenses is not a pointless entry.  Even though those premiums are not deducted from your Schedule C income (thus reducing self-employment tax), they are entered on Form 1040 Schedule 1 line 17 as an adjustment to income.  This means they are used to reduce your income tax, not self-employment tax.  

The deduction for the long term care insurance premium is also not limited by 7.5% of your AGI as it would if it were claimed on Schedule A Itemized Deductions.  So, generally it is a more beneficial deduction than claiming the premiums as a medical expense.

@pcatful