Self-Employed Health Insurance Deduction for Long-Term Care Premiums

Yes, long-term care insurance premiums can be included in the self-employed health insurance deduction, subject to age-based limits.

Qualified Long-Term Care Premiums:

Long-term care insurance premiums are deductible as part of the self-employed health insurance deduction on Schedule 1 (Form 1040). However, the deductible amount is limited based on the taxpayer's age at the end of the tax year.

Age-Based Limits for 2024:

The maximum deductible long-term care premiums are [2]:

• Age 40 or under: $470
• Age 41 to 50: $880
• Age 51 to 60: $1,760
• Age 61 to 70: $4,710
• Age 71 or over: $5,880

These limits apply on a per-person, per-year basis.

Form 7206 Requirement:

When amounts paid for qualified long-term care insurance are used to calculate the self-employed health insurance deduction, you must use Form 7206, Self-Employed Health Insurance Deduction, to calculate the deduction.

General Limitations Still Apply:

The total self-employed health insurance deduction (including long-term care premiums) remains subject to the standard limitations, meaning it cannot exceed the taxpayer's net profit from the business under which the insurance plan is established, reduced by the deductible portion of self-employment tax and any qualified retirement plan contributions [3].