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balerm
New Member

Can I deduct, as a sole proprietor, my wife's long-term care insurance premium on form 1040 line 29 ("self-employed health insurance deduction")?

The long-term care policy is in my wife's name. I am the sole owner of my business and I do not employ my wife in my business.

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MichaelMc
New Member

Can I deduct, as a sole proprietor, my wife's long-term care insurance premium on form 1040 line 29 ("self-employed health insurance deduction")?

Subject to deduction eligibility rules, if you are self-employed, you may 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.

Here's what you can deduct this year (2016) for long-term care insurance premiums:

Age 40 and younger  $390

Age 41 to 50              $730

Age 51 to 60            $1,460

Age 61 to 70            $3,900

Over age 70             $4,870

For more information, please see https://turbotax.intuit.com/tax-tools/tax-tips/Self-Employment-Taxes/Deducting-Health-Insurance-Prem....


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1 Reply
MichaelMc
New Member

Can I deduct, as a sole proprietor, my wife's long-term care insurance premium on form 1040 line 29 ("self-employed health insurance deduction")?

Subject to deduction eligibility rules, if you are self-employed, you may 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.

Here's what you can deduct this year (2016) for long-term care insurance premiums:

Age 40 and younger  $390

Age 41 to 50              $730

Age 51 to 60            $1,460

Age 61 to 70            $3,900

Over age 70             $4,870

For more information, please see https://turbotax.intuit.com/tax-tools/tax-tips/Self-Employment-Taxes/Deducting-Health-Insurance-Prem....


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