Randall Posted February 25, 2016 Report Share Posted February 25, 2016 Client is telling me his insurance agent says the LTC premiums can be deducted on the Corp return. My understanding is that LTC is treated like other health insurance. Under the old rules, added as compensation to W2 and deducted on 1040 p1 to the extent LTC premiums allowed. With the new ACA rules, S Corp has other employees and the plan doesn't comply with ACA, then the premiums cannot be deducted by Corp, shareholder deducts on Sch A similar to the other health insurance premiums. Is there something I'm missing. Just wanted to run this by the forum before I go back to client. 1 Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted February 25, 2016 Report Share Posted February 25, 2016 I agree with you. LTC insurance is clearly not for the benefit of the corp, it's totally personal. No way to make it anything but compensation. 2 Quote Link to comment Share on other sites More sharing options...
Randall Posted February 29, 2016 Author Report Share Posted February 29, 2016 Ins agent sent me some info. One piece pointed out that the LTC was an exception to ACA. IRC 9831(c)(1) and 9832(c)(2). It appears to be so. But the agent was wrong about deduction by the corp. Still must be added to W2 Box 1 and then 1040 p1 above the line deduction. And limited to the LTC premium limits depending on age with excess deducted on Sch A. Anyone agree or disagree with this? 2 Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted February 29, 2016 Report Share Posted February 29, 2016 I agree. Quote Link to comment Share on other sites More sharing options...
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