Tax Guide to Deducting Long-Term Care Insurance Premiums

Written by Coach Janelle CPA on August 21, 2024

Long-term care costs can be substantial, and neither Medicare nor Medicaid provide comprehensive coverage for most people. Long-term care insurance can help protect your finances, and there may be ways to deduct the premiums, depending on your business structure. 

Here are four key points to consider:

1. C corporations can provide long-term care insurance as a fully deductible, tax-free benefit to owners.

2. Sole proprietors or single-member LLCs with a spouse as the only employee may be able to deduct 100 percent of the premiums through a Section 105-HRA plan.

3. S corporation owners, partners, and other sole proprietors may be able to deduct premiums subject to age-based limits.

4. If you don’t qualify for business-related deductions, you might deduct premiums as itemized deductions subject to age-based limits and the 7.5 percent floor.

Navigating the complexities of tax deductions, especially for something as crucial as long-term care insurance premiums, can be challenging. But with the right tax strategy, you can protect your finances and maximize your savings. Coach Janelle, CPA, specializes in crafting personalized tax strategies that ensure you get the most out of every deduction.

Whether you're a business owner or an individual, Coach Janelle, CPA is here to guide you through the process and ensure you're not leaving any money on the table.

Ready to unlock your tax-saving potential? Contact Coach Janelle, CPA today for a personalized tax strategy planning session!

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