jasdlm Posted March 17, 2009 Report Share Posted March 17, 2009 Client is employed as a Professor at the University. He has some consulting income every year (as most faculty do). His insurance agent told him he could deduct his LTHC premiums (and those of his wife) on the front of the 1040 as a self-employed person. University pays HI. I have never seen this done before. I have tried to research, and I'm not finding a clear answer. The University does not offer a subsidized LTCH policy for employees. Schedule C income is more than LTHC premium. However, it still doesn't seem quite right. Anyone know anything about this? Thanks so much. Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted March 17, 2009 Report Share Posted March 17, 2009 Sounds like he could deduct this as long as he had the Sch C income. It is medical insurance, and he pays it, right? Quote Link to comment Share on other sites More sharing options...
jasdlm Posted March 17, 2009 Author Report Share Posted March 17, 2009 It's long term health care insurance (nursing home). Quote Link to comment Share on other sites More sharing options...
KEYWEST_RICKS Posted March 17, 2009 Report Share Posted March 17, 2009 It's long term health care insurance (nursing home). i believe if you click on the supporting schedule for self employed health insurance on the front page of the 1040 there is a spot there to inter LTC premiums. deduct on front of form 1040 unless it exceeds the max amounts. jeff Quote Link to comment Share on other sites More sharing options...
ljwalters Posted March 17, 2009 Report Share Posted March 17, 2009 The insurance would have to be started under the business. Is this the case? If not the way I read the regs there is no self employed healthe insurance adjustment. If I'm wrong I have a few amendments of my own to do. Linda and buddy Quote Link to comment Share on other sites More sharing options...
RoyDaleOne Posted March 17, 2009 Report Share Posted March 17, 2009 (2) LIMITATIONS (A) DOLLAR AMOUNT No deduction shall be allowed under paragraph (1) to the extent that the amount of such deduction exceeds the taxpayer's earned income (within the meaning of section 401©) derived by the taxpayer from the trade or business with respect to which the plan providing the medical care coverage is established. ( OTHER COVERAGE Paragraph (1) shall not apply to any taxpayer for any calendar month for which the taxpayer is eligible to participate in any subsidized health plan maintained by any employer of the taxpayer or of the spouse of the taxpayer. The preceding sentence shall be applied separately with respect to-- (i) plans which include coverage for qualified long-term care services (as defined in section 7702B©) or are qualified long-term care insurance contracts (as defined in section 7702B(), and (ii) plans which do not include such coverage and are not such contracts. © LONG-TERM CARE PREMIUMS In the case of a qualified long-term care insurance contract (as defined in section 7702B(), only eligible long-term care premiums (as defined in section 213(d)(10)) shall be taken into account under paragraph (1). See: REV. RUL. 71-588 for planning idea. Only subsidized insurance is disqualified? I think the agent maybe correct. Quote Link to comment Share on other sites More sharing options...
RoyDaleOne Posted March 17, 2009 Report Share Posted March 17, 2009 IRS Letter Rulings and TAMs 200524001 5/17/2005 Quote Link to comment Share on other sites More sharing options...
jasdlm Posted March 17, 2009 Author Report Share Posted March 17, 2009 Thanks so much. I wonder how many of these I have missed through the years. ***Sigh*** Quote Link to comment Share on other sites More sharing options...
ljwalters Posted March 17, 2009 Report Share Posted March 17, 2009 I just read the letter ruling 200524001 5/17/2005 that RoyDaleOne posted. Thanks I missed that. I love this board. I intend to ament a couple of returns. Linda and buddy IRS Letter Rulings and TAMs Quote Link to comment Share on other sites More sharing options...
joanmcq Posted March 18, 2009 Report Share Posted March 18, 2009 I deduct mine! My employer doesn't provide, so I do. Unfortunately my employers vision and dental plans are so lousy I provide my own, but that is on Sch A... Quote Link to comment Share on other sites More sharing options...
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