Can I take a deduction for long term care insurance in my independent business section as well as deduction in my medical expenses?

[ToddL · Accepted solution]

You can take a deduction for long term care insurance, but only once - either as a self-employed deduction (Line 29 of Form 1040, "above-the-line") or as an individual deduction (Schedule A, Form 1040).

Self-employed deduction - The tax advantages of a long-term care policy ramp up sharply if you're self-employed. Rather than listing your premiums on Schedule A, they go directly on line 29 ("Self-employed health insurance deduction") on Form 1040.

Individual deduction - Because the long-term care insurance portion is capped by age and because only the portion of your total medical expenses that exceeds 7.5 percent of your adjusted gross income is deductible, few employed individuals realize a full deduction on their long-term care premium.