2007-05-25 03:53:43 · 5 answers · asked by ½ 1 in Business & Finance ➔ Taxes ➔ United States
Personal income tax question? Business income tax question? If it's your personal income taxes, then no, you can't write off life insurance payment. If it's business income taxes, and the life insurance payments are for life insurance that you provide to your employees, than yes, you can write it off, provided that the company would not benefit at all from the life insurance proceeds. If you are providing life insurance for your employees than that is a fringe benefit, and is deductible to the business. But if the company is providing life insurance for it's employees, but the company is the beneficiary than no, the business can't write off the payments.
2007-05-25 04:00:08 · answer #1 · answered by Anonymous · 1⤊ 1⤋
I'm assuming this is for your personal tax return, and not business related. Payments for life insurance policies are non-deductible. Other insurance like health insurance, long-term care premiums, etc. are deductible on Schedule A, and when added to other Medical Expenses, must be greater than 7.5% of your Adjusted Gross Income before you can even begin to take a deduction.
Hope this helps!!
2007-05-25 10:59:43 · answer #2 · answered by starlight_chic06 3 · 0⤊ 0⤋
My answers are based on the assumption that the insurance is a term policy, not whole life, cash value, etc. policy.
Life insurance for yourself, family member, etc. No
If you have a business and you are paying for life insurance for your employees AND the company is not the beneficiary. Yes, but for any insurance over $50,000, you must add to the employee's income (P.S. 58 costs). There is a chart based on the amount of insurance and the employee's age.
If a business is paying for life insurance and is also the beneficiary (sometimes called "key man" insurance), the premium is not deductible, but the proceeds (up death) are tax free.
2007-05-25 14:04:08 · answer #3 · answered by garyg7 7 · 1⤊ 0⤋
Generally, no.
On your personal income tax return, life insurance premiums are not deductible.
If you are a business owner, you can deduct life insurance premiums paid on employees, but not those paid on the owner.
2007-05-25 11:00:45 · answer #4 · answered by Kristine M 2 · 0⤊ 0⤋
You can deduct medical insurance premiums under some circumstances, but not life insurance.
2007-05-25 21:10:37 · answer #5 · answered by Judy 7 · 0⤊ 0⤋