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#18
10-19-2004, 03:27 PM
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 Re: LTC Premiums Deductions for Self Employed ed wrote: - quote - > Also, you can deduct your Medicare premiums...
FWIW, I've seen several anecdotal reports wherein peopleclaim that the IRS has advised them that they CANNOT deduct Medicare (or COBRA) premiums under the SE medical provision because such plans are NOT "established with respect to their business." So, you can choose to walk on (possibly thin) ice, or not. <g MTW << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#17
10-19-2004, 02:49 PM
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| Re: LTC Premiums Deductions for Self Employed ed wrote: - quote - > Your "Plan" that your business establishes is to pay the
I think I'm confused. As has been noted, nowhere in the> premiums for your family's various health insurances. Code or the regulations is it required that the insurance be estabished under your business, only that the Plan must be established under your business. Hence your next sentence: - quote - > You
is wrong. Isn't it?> will find it is impossible to get a plan established under > your business as no company will sell you a group plan for 1 > person. << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#16
10-18-2004, 04:00 AM
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| Re: LTC Premiums Deductions for Self Employed ramco[at]fast.net (Dick Morrison) wrote: - quote - > "David Woods, EA, ChFC, CLU" <dwoods[at]woods-financial.com> wrote:
This leads to my final> > "Arthur L. Rubin" <ronnirubin[at]sprintmail.com> wrote: > > > Dick Morrison wrote: > Well, thanks for everyone's input. I looked at Publication > 535 and sure enough it says that I may deduct the LTC > premiums for myself and my wife and do so directly on line > 29 of Form 1040. But it also reads: "The (LTC) insurance > plan must be established under your business..." As a SE > person, my name is my business. - quote - > questions: What does "plan must be established under your
Your "Plan" that your business establishes is to pay the> business" mean and would I qualify? Then there is the matter > of two policies. One is in my name. The other is in my > wife's name. Do I meet the criteria for deducting the > premiums that both my wife and I pay? premiums for your family's various health insurances. You will find it is impossible to get a plan established under your business as no company will sell you a group plan for 1 person. Also, you can deduct your Medicare premiums and AARP or other Supplement as part of your "plan" to pay your premiums. Wife's premiums also. ed << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#15
10-15-2004, 12:28 AM
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| Re: LTC Premiums Deductions for Self Employed "David Woods, EA, ChFC, CLU" <dwoods[at]woods-financial.com> wrote: - quote - > "Arthur L. Rubin" <ronnirubin[at]sprintmail.com> wrote:
Well, thanks for everyone's input. I looked at Publication> > Dick Morrison wrote: > > > My situation is this. I am 65, retired from a full-time job, > > > receiving social security, have income from IRAs, and I am > > > now also self-employed earning at least $16,000 annually as > > > a marketing consultant. My wife and I took out long term > > > care insurance three years ago when I retired from my > > > full-time job. As I read the IRS rule, since I am now > > > self-employed (even though "retired") I can deduct the cost > > > of our LTC premiums on our federal return. This almost > > > sounds too good to be true - is it? > > There seems to be a dispute among the experts as to whether > > LTC premiums are "medical insurance" for the purpose of the > > self-employed medical insurance deduction, although they are > > deductible as medical expenses, and, are, in fact insurance. > > I don't have an opinion at this time. > Well there shouldn't BE a dispute. The allowance for the > deduction is codifed. 535 and sure enough it says that I may deduct the LTC premiums for myself and my wife and do so directly on line 29 of Form 1040. But it also reads: "The (LTC) insurance plan must be established under your business..." As a SE person, my name is my business. This leads to my final questions: What does "plan must be established under your business" mean and would I qualify? Then there is the matter of two policies. One is in my name. The other is in my wife's name. Do I meet the criteria for deducting the premiums that both my wife and I pay? << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#14
10-14-2004, 08:06 AM
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| Re: LTC Premiums Deductions for Self Employed David Woods, EA, ChFC, CLU" <dwoods[at]woods-financial.com> wrote: - quote - > "Arthur L. Rubin" <ronnirubin[at]sprintmail.com> wrote: > > Dick Morrison wrote: > > > My situation is this. I am 65, retired from a full-time job, > > > receiving social security, have income from IRAs, and I am > > > now also self-employed earning at least $16,000 annually as > > > a marketing consultant. My wife and I took out long term > > > care insurance three years ago when I retired from my > > > full-time job. As I read the IRS rule, since I am now > > > self-employed (even though "retired") I can deduct the cost > > > of our LTC premiums on our federal return. This almost > > > sounds too good to be true - is it? > > There seems to be a dispute among the experts as to whether > > LTC premiums are "medical insurance" for the purpose of the > > self-employed medical insurance deduction, although they are > > deductible as medical expenses, and, are, in fact insurance. > > I don't have an opinion at this time. > Well there shouldn't BE a dispute. The allowance for the > deduction is codifed. The code Section is 162(l)(2)(C). So I agree with Dave too! -- Drew Edmundson, CPA (NC) << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#13
10-14-2004, 07:47 AM
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| Re: LTC Premiums Deductions for Self Employed ed[at]edcosoft.com (ed) writes: - quote - > > Yes, it is. LTC premiums are not health insurance. They
Well I'll be dipped. Thanks for the correction.> > are deductible, within limits, as a Schedule A medical > > expense. See IRS Publication 502. > Phil: See page 25 of Publication 535 wherein LTC premiums > are considered Health Insurance for the SE Health Ins > deduction. Phil Marti Clarksburg, MD << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#12
10-11-2004, 04:02 AM
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| Re: LTC Premiums Deductions for Self Employed "Harlan Lunsford" <hlunsford[at]bellsouth.net> wrote: - quote - > David Woods, EA, ChFC, CLU wrote:
Great minds think alike. <gr> > "Dick Morrison" <ramco[at]fast.net> wrote: > > > My situation is this. I am 65, retired from a full-time job, > > > receiving social security, have income from IRAs, and I am > > > now also self-employed earning at least $16,000 annually as > > > a marketing consultant. My wife and I took out long term > > > care insurance three years ago when I retired from my > > > full-time job. As I read the IRS rule, since I am now > > > self-employed (even though "retired") I can deduct the cost > > > of our LTC premiums on our federal return. This almost > > > sounds too good to be true - is it? > > LTC premiums are deductible as SE health for an self > > employed person to the same limitations on total premiums > > deductible based on your age as to a non-se person. Unless > > your premiums are less than the amount allowed by the IRS > > for your age, your deduction is limited to the adjusted > > amount. > My vote's with you, DAve. that's you and me against Durall > and Marti. -- David M. Woods, EA, ChFC, CLU Woods Financial Services Norwood, MA 02062 www.woods-financial.com << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#11
10-11-2004, 04:02 AM
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| Re: LTC Premiums Deductions for Self Employed "Arthur L. Rubin" <ronnirubin[at]sprintmail.com> wrote: - quote - > Dick Morrison wrote:
Well there shouldn't BE a dispute. The allowance for the> > My situation is this. I am 65, retired from a full-time job, > > receiving social security, have income from IRAs, and I am > > now also self-employed earning at least $16,000 annually as > > a marketing consultant. My wife and I took out long term > > care insurance three years ago when I retired from my > > full-time job. As I read the IRS rule, since I am now > > self-employed (even though "retired") I can deduct the cost > > of our LTC premiums on our federal return. This almost > > sounds too good to be true - is it? > There seems to be a dispute among the experts as to whether > LTC premiums are "medical insurance" for the purpose of the > self-employed medical insurance deduction, although they are > deductible as medical expenses, and, are, in fact insurance. > I don't have an opinion at this time. deduction is codifed. -- David M. Woods, EA, ChFC, CLU Woods Financial Services Norwood, MA 02062 www.woods-financial.com << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#10
10-08-2004, 04:21 PM
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| Re: LTC Premiums Deductions for Self Employed - quote - > The fact that you are self-employed is irrelevant in
That is incorrect. For self-employed people, long term care> regard to LTC insurance. premiums can be deducted in the same way (and same line) that health insurance premiums are deducted. Jan Zobel EA << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#9
10-08-2004, 04:02 PM
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| Re: LTC Premiums Deductions for Self Employed David Woods, EA, ChFC, CLU wrote: - quote - > "Dick Morrison" <ramco[at]fast.net> wrote:
My vote's with you, DAve. that's you and me against Durall> > My situation is this. I am 65, retired from a full-time job, > > receiving social security, have income from IRAs, and I am > > now also self-employed earning at least $16,000 annually as > > a marketing consultant. My wife and I took out long term > > care insurance three years ago when I retired from my > > full-time job. As I read the IRS rule, since I am now > > self-employed (even though "retired") I can deduct the cost > > of our LTC premiums on our federal return. This almost > > sounds too good to be true - is it? > LTC premiums are deductible as SE health for an self > employed person to the same limitations on total premiums > deductible based on your age as to a non-se person. Unless > your premiums are less than the amount allowed by the IRS > for your age, your deduction is limited to the adjusted > amount. and Marti. ChEAr$, Harlan Lunsford, EA n LA << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#8
10-08-2004, 03:42 PM
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| Re: LTC Premiums Deductions for Self Employed "Phil Marti" <philmarti[at]aol.com> wrote: - quote - > ramco[at]fast.net (Dick Morrison) writes:
According to §162 they ARE health insurance.> > As I read the IRS rule, since I am now > > self-employed (even though "retired") I can deduct the cost > > of our LTC premiums on our federal return. This almost > > sounds too good to be true - is it? > Yes, it is. LTC premiums are not health insurance. - quote - > They are deductible, within limits, as a Schedule A
--> medical expense. See IRS Publication 502. David M. Woods, EA, ChFC, CLU Woods Financial Services Norwood, MA 02062 www.woods-financial.com << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#7
10-08-2004, 03:42 PM
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| Re: LTC Premiums Deductions for Self Employed "Ed Durall" <edurall[at]aol.com> wrote: - quote - > The fact that you are self-employed is irrelevant in regard
Well yes and no. It is deductible as SE health, but subject> to LTC insurance. to the dollar limitations you provide. - quote - > Annual premiums paid for LTC insurance are deductible as a
--> medical expense on Schedule A, but they are limited. For > 2003, the limit for ages 61 through 70 was $2,510. The > limits are indexed for inflation. David M. Woods, EA, ChFC, CLU Woods Financial Services Norwood, MA 02062 www.woods-financial.com << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#6
10-08-2004, 03:42 PM
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| Re: LTC Premiums Deductions for Self Employed philmarti[at]aol.com (Phil Marti) wrote: - quote - > ramco[at]fast.net (Dick Morrison) writes:
Au contraire. Qualified LTC premiums ARE considered as> > As I read the IRS rule, since I am now > > self-employed (even though "retired") I can deduct the cost > > of our LTC premiums on our federal return. This almost > > sounds too good to be true - is it? > Yes, it is. LTC premiums are not health insurance. They > are deductible, within limits, as a Schedule A medical > expense. See IRS Publication 502. health insurance by the IRS, and if you are SE, may be deducted (within limits) on Line 29 of the 1040 form. << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#5
10-08-2004, 03:42 PM
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| Re: LTC Premiums Deductions for Self Employed edurall[at]aol.com (Ed Durall) wrote: - quote - > The fact that you are self-employed is irrelevant in regard
Not exactly. The LTC premiums (limited by age) CAN be> to LTC insurance. deducted as an above-the-line deduction on the front of your 1040. See the line for SE health insurance. - quote - > Annual premiums paid for LTC insurance are deductible as a
A Schedule A deduction is also subject to the 7.5% of AGI> medical expense on Schedule A, but they are limited. For > 2003, the limit for ages 61 through 70 was $2,510. The > limits are indexed for inflation. limitation. << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#4
10-08-2004, 03:42 PM
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| Re: LTC Premiums Deductions for Self Employed Dick Morrison wrote: - quote - > My situation is this. I am 65, retired from a full-time job,
There seems to be a dispute among the experts as to whether> receiving social security, have income from IRAs, and I am > now also self-employed earning at least $16,000 annually as > a marketing consultant. My wife and I took out long term > care insurance three years ago when I retired from my > full-time job. As I read the IRS rule, since I am now > self-employed (even though "retired") I can deduct the cost > of our LTC premiums on our federal return. This almost > sounds too good to be true - is it? LTC premiums are "medical insurance" for the purpose of the self-employed medical insurance deduction, although they are deductible as medical expenses, and, are, in fact insurance. I don't have an opinion at this time. << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#3
10-08-2004, 03:23 PM
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| Re: LTC Premiums Deductions for Self Employed philmarti[at]aol.com (Phil Marti) wrote: - quote - > ramco[at]fast.net (Dick Morrison) writes:
Phil: See page 25 of Publication 535 wherein LTC premiums> > As I read the IRS rule, since I am now > > self-employed (even though "retired") I can deduct the cost > > of our LTC premiums on our federal return. This almost > > sounds too good to be true - is it? > Yes, it is. LTC premiums are not health insurance. They > are deductible, within limits, as a Schedule A medical > expense. See IRS Publication 502. are considered Health Insurance for the SE Health Ins deduction. ed << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#2
10-04-2004, 03:17 PM
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| Re: LTC Premiums Deductions for Self Employed "Dick Morrison" <ramco[at]fast.net> wrote: - quote - > My situation is this. I am 65, retired from a full-time job,
LTC premiums are deductible as SE health for an self> receiving social security, have income from IRAs, and I am > now also self-employed earning at least $16,000 annually as > a marketing consultant. My wife and I took out long term > care insurance three years ago when I retired from my > full-time job. As I read the IRS rule, since I am now > self-employed (even though "retired") I can deduct the cost > of our LTC premiums on our federal return. This almost > sounds too good to be true - is it? employed person to the same limitations on total premiums deductible based on your age as to a non-se person. Unless your premiums are less than the amount allowed by the IRS for your age, your deduction is limited to the adjusted amount. -- David M. Woods, EA, ChFC, CLU Woods Financial Services Norwood, MA 02062 www.woods-financial.com << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#1
10-04-2004, 02:00 PM
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| Re: LTC Premiums Deductions for Self Employed ramco[at]fast.net (Dick Morrison) writes: - quote - > As I read the IRS rule, since I am now
Yes, it is. LTC premiums are not health insurance. They> self-employed (even though "retired") I can deduct the cost > of our LTC premiums on our federal return. This almost > sounds too good to be true - is it? are deductible, within limits, as a Schedule A medical expense. See IRS Publication 502. Phil Marti Clarksburg, MD << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
|
10-04-2004, 02:00 PM
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| Re: LTC Premiums Deductions for Self Employed The fact that you are self-employed is irrelevant in regard to LTC insurance. Annual premiums paid for LTC insurance are deductible as a medical expense on Schedule A, but they are limited. For 2003, the limit for ages 61 through 70 was $2,510. The limits are indexed for inflation. << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#-1
10-02-2004, 11:08 AM
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| LTC Premiums Deductions for Self Employed My situation is this. I am 65, retired from a full-time job, receiving social security, have income from IRAs, and I am now also self-employed earning at least $16,000 annually as a marketing consultant. My wife and I took out long term care insurance three years ago when I retired from my full-time job. As I read the IRS rule, since I am now self-employed (even though "retired") I can deduct the cost of our LTC premiums on our federal return. This almost sounds too good to be true - is it? << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
| Tags |
| deductions, employed, ltc, premiums |
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