Page 81 - Small Business Taxes

16:31 - 2-Feb-2023
Page 22 of 57
Fileid: … tions/p535/2022/a/xml/cycle01/source
The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
you pay the premiums yourself, the S cor- you can include only the smaller of the following may be used only to reduce future premi-
poration must reimburse you and report amounts. ums or increase future benefits.
the premium amounts in box 1 of Form 1. The amount of premiums paid for that per- • It must not provide for a cash surrender
W-2 as wages to be included in your gross son. value or other money that can be paid, as-
income. Otherwise, the insurance plan signed, pledged, or borrowed.
won’t be considered to be established un- 2. The amount shown below. Use the per- • It must generally not pay or reimburse ex-
der your business. son's age at the end of the tax year. penses incurred for services or items that
Medicare premiums you voluntarily pay to a. Age 40 or younger — $450 would be reimbursed under Medicare, ex-
cept where Medicare is a secondary payer
obtain insurance in your name that is similar to b. Age 41 to 50 — $850 or the contract makes per diem or other
qualifying private health insurance can be used periodic payments without regard to ex-
to figure the deduction. Amounts paid for health c. Age 51 to 60 — $1,690 penses.
insurance coverage from retirement plan distri- d. Age 61 to 70 — $4,510
butions that were nontaxable because you are a Qualified long-term care services. Quali-
retired public safety officer can’t be used to fig- e. Age 71 or older — $5,640 fied long-term care services are:
ure the deduction. Qualified long-term care insurance con- • Necessary diagnostic, preventive, thera-
You can claim the deduction for self-em- tract. A qualified long-term care insurance peutic, curing, treating, mitigating, and re-
habilitative services; and
ployed health insurance on Schedule 1 (Form contract is an insurance contract that only pro- • Maintenance or personal care services.
1040), line 17. vides coverage of qualified long-term care serv-
ices. The contract must meet all the following The services must be required by a chronically
Qualified long-term care insurance. You requirements. ill individual and prescribed by a licensed health
can include premiums paid on a qualified • It must be guaranteed renewable. care practitioner.
long-term care insurance contract when figuring • It must provide that refunds, other than re-
your deduction. But, for each person covered, funds on the death of the insured or com-
plete surrender or cancellation of the con-
tract, and dividends under the contract

Page 22 Chapter 6 Insurance