2023 is my first year as a self-employed. I have a LTC policy that I pay on my own and I'm not eligible for any other plan that is subsidized. I first entered the premiums in my personal deduction section as a medical expense. It is shown on Schedule A “Medical Expense Worksheet” 2e. However, the instructions say "if LTC premiums are associated with a specific business activity, enter directly in Self-employed Health and Long-term Care Insurance Deduction". Item 2 of Form 7206 is for LTC payments and once I entered there, I do get the deductions. I just wanted to make sure that this is the correct place for entry as I'm not sure what is meant by my premiums being "associated with a specific business activity".
Self-Employed individuals can deduct both medical and long-term care premiums under their self-employed business. This is the appropriate section of TurboTax for these expenses.
To enter this in TurboTax for Desktop, go to your Schedule C Business Expenses summary page and click on All Other Expenses. Self-employed health insurance appears on the first page; long-term care insurance is on the next page.
If you're using TurboTax Online, go to your business, click on Add Expenses for This Work, then the arrow beside Less Common. Use the page numbers at the bottom until you find Long-term care insurance. Check the box and Continue. Then click Start beside Long-term care insurance to enter your premiums.
The Schedule C navigation for TurboTax for Desktop is more efficient, plus you can view the forms before you file. If you're using TurboTax Online, you may consider purchasing and installing the desktop version in the future.
In either version, you can use the magnifying glass in the upper righthand corner of TurboTax to search for "schedule c." This will bring up a "jump-to" link that goes directly to the start of that topic.
Thank you for your detailed response. Very helpful tips regarding desktop v.s. online version. I have always purchased TurboTax CD.
Because I purchased my health insurance from Marketplace, I do not enter my premium as a business deduction. I filled out Form 1095A and TurboTax calculates an amount for Schedule 1, line 17.
I looked at Schedule C Expense. Part II line 15 lists long-term care insurance. When I clicked on it, it takes me to Form 7206 item 2 worksheet, which is where I entered my premium for long-term care insurance. I do see that the amount of LTC premium deduction adds up to the health care deduction on Schedule 1, line 17.
Additionally, where do I enter internet and mobile phone data plan expenses? I'm claiming home office deduction. Do I enter the internet and data plan expenses on Form 8829 “Expenses for business use of your home”, line 22 “other common business expense”?
Thank you again!
Yes, any expenses directly related to your Home Office should be entered under that topic from the Business Expenses summary page. These entries will appear on Form 8829.