Tax Year Prior to 2020: Long Term Care deductions self employment

[donheff2]

I want to make sure I am properly deducting long term care premiums.  It appears that most people deduct them under medical expenses but I assume that is only useful if you reach the rather high medical expense threshold to beat the standard deduction.  But when entering K1 information for my wife I noticed a box under "Describe the Partnership" > "I personally paid health insurance and/or long term care insurance for myself and my family."  I checked that box and entered the amount of LTC premiums that my wife and I pay.  TT immediately dropped the amount of tax owed so this appears to be unrelated to the regular medical expense deduction.  Am I correct to enter it here?  Am I right that adding LTC premiums as a medical expense would not result in a deduction if other out of pocket expenses are low?

[MichaelL1]

You are correct.  If entered in the medical itemized deduction area, the medical gets reduced by 7.5% or 10% (depending on age) of your adjusted gross income. 

Where you are entering it now, is much better from a tax perspective, as there is no reduction due to being a K-1 holder (self-employed). 

Great job!  The information below is directly from the IRS web site.

Don’t Miss the Health Insurance Deduction if You’re Self-Employed

IRS Tax Tip 2013-43, March 28, 2013

If you are self-employed, the IRS wants you to know about a tax deduction generally available to people who are self-employed.

The deduction is for medical, dental or long-term care insurance premiums that self-employed people often pay for themselves, their spouse and their dependents. 

Source:  https://www.irs.gov/uac/newsroom/dont-miss-the-health-insurance-deduction-if-youre-self-employed

[donheff2]

Thanks.  Are you a CPA or just a general tax aficionado?

[MichaelL1]

CPA, 34 years with IRS and 6 here with TurboTax.

[MichaelL1]

Enjoy helping others doing their taxes correctly, paying only what they owe.

[donheff2]

Well thank you again.  I didn't realize TT hired experts to help us out.  I am glad they do.  Enjoy your Fed retirement when you finally get to it, I am enjoying mine. 😉

[MM627]

I entered the premium amounts for myself and spouse, both under $4000, under self employment income expenses.  TT shows it as fix needed and won't allow me to e file.  The note says that the amount exceeds maximum.  We showed a net profit for self employment.  Why is it being questioned?

[WKins2]

Most of the TurboTax experts are CPAs and have the training and knowledge of both the changing tax laws and the software.