Should I deduct long term care insurance premiums on schedule C or as a medical expense deduction?

[KatrinaB · Accepted solution]

You should deduct your long term care insurance premiums on Schedule C. Please click the TurboTax link below for more information.

https://turbotax.intuit.com/tax-tips/home-ownership/deducting-health-insurance-premiums-if-youre-sel...

[normtf]

I'm using TT Home & Business for TY 2021 in step-by-step mode. I'm self-employed and make a profit. I included long term care insurance premiums as part of my business expenses. But I noticed my long term care insurance premiums are not being included in the Schedule C totals. I have seen several posts that indicate that it can be included on Schedule C, yet on the step-by-step dialog box in TT, it says that the deduction will be included on Form 1040, not Schedule C. When I view the Schedule C summary, the LTC premiums that I had entered are completely missing. Is this an error in TT??

[jtax]

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@normtf wrote:

IWhen I view the Schedule C summary, the LTC premiums that I had entered are completely missing. Is this an error in TT??

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That is correct. If entered properly as a Schedule C expense it will appear on Schedule 1 line 17 (self-employed health insurance deduction), which will flow to 1040 line 10.

It works this way because you not only might have multiple Schedule Cs but also Schedule F or K-1s from partnerships/llc/s-corps any or all of which could have such premiums that need to be added up.  Also this way it does not reduce business income on the Schedule C. That has various implications like not getting out of self-employment tax on the premium amount. That must be because of the choices Congress made when writing the statute.

[normtf]

jtax, thanks for the helpful advice. Greatly appreciated!

[Henrygerbil]

Where or how do you enter the LTC premiums in TT for 2023? I can't find where to input the dollar amount. Thanks

[DoninGA]

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@Henrygerbil wrote:

Where or how do you enter the LTC premiums in TT for 2023? I can't find where to input the dollar amount. Thanks

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You enter the LTC premiums paid in the Medical Expense section of the program.

To enter your medical expenses -

Click on Federal Taxes (Personal using Home and Business)
Click on Deductions and Credits
Click on I'll choose what I work on (if shown)
Scroll down to Medical
On Medical Expenses, click the start or update button

Or enter medical expenses in the Search box located in the upper right of the program screen. Click on Jump to medical expenses

[Henrygerbil]

I'm trying to report them via the Schedule C, and the method described doesn't work since I don't have total medical expenses above $13.589 in 2023. 

[DoninGA]

@Henrygerbil Only health insurance premiums can be reported with the Schedule C.  The LTC premiums are not health insurance.