Introduction
As a self-employed professional, you wear many hats—from CEO to accountant to employee. One of the biggest advantages of being your own boss is controlling your finances, and that includes the ability to deduct certain expenses. Did you know your long-term care insurance premiums may qualify for tax deductions?
How It Works
Self-employed individuals can generally deduct 100% of their health insurance premiums, including qualified LTC premiums, as a business expense. The deductible amount depends on age, with higher limits allowed as you get older.
Double Advantage
This means two powerful things:
- You reduce your taxable income.
- You secure coverage for potential care needs in the future.
Example
If a self-employed consultant pays $3,000 in LTC premiums and is eligible for the deduction, that expense reduces taxable income while providing long-term care protection.
Conclusion
For entrepreneurs, LTC insurance isn’t just protection—it’s also a tax strategy. By taking advantage of deductions, you safeguard both your health and your business’s bottom line.