Page 70 - Growing Old Without a Plan for Long Term Care is not for Sissies_Neat

52 Growing Old Without a Plan for Long Term Care is not for Sissies Under some circumstances, premiums for Long Term Care Insurance can be tax deductible without having to meet the 10% of Adjusted Gross Income requirement. Health Savings Accounts and Health Reimbursement Accounts Subject to the mentioned limits, premiums for Long Term Care Insurance can be paid using Health Savings Accounts (HSA) or Health Reimbursement Accounts (HRA). Premiums cannot be paid through Flexible Spending Accounts. Check with your plan administrator or accountant to be sure. Self Employed, Partnership, LLC & S-Corporations This gets a bit more complicated. If you are self-employed, you may be able to deduct your Long Term Care Insurance pre- mium without meeting the 10% of AGI requirement. However, once again the deduction is limited to the dollar limits above. If you own more than 2% of a business that is a Partnership, an S-Corporation or a LLC taxed as a Partnership or S-Corp, and your business purchases and pays for the Long Term Care Insurance policy, the premium will be included in your Adjusted Gross Income. You may deduct the premium up to the limits in the table above without meeting the 10% of AGI normally required. If the plan is purchased in your own name rather than in the name of the S-Corp, you are then subject to the 10% of AGI requirement. C-Corporations A C-Corp may purchase a tax qualifed Long Term Care Insurance policy on behalf of its employees and take a 100% deduction as a business expense. This deduction is not subject to the limits in the table above. The purchase of Long Term Care Insurance is not subject to non-discrimination rules and