Yes, Disability Insurance can be tax deductible on Schedule C under certain circumstances.
Schedule C is used by self-employed individuals to report their business income and expenses. If you are self-employed and pay for Disability Insurance premiums, you may be eligible to deduct them as a business expense on Schedule C.
To qualify for the tax deduction, the Disability Insurance must meet the following criteria:
1.
Ordinary and Necessary: The insurance must be considered ordinary and necessary for your business. This means that it must be directly related to your business operations and commonly accepted in your industry.
2.
Business Expense: The premiums must be paid by your business and not by you personally. If you are a sole proprietor, the premiums should be paid from your business account.
3.
No Double Benefit: You cannot claim a tax deduction for Disability Insurance premiums if you are already receiving a tax-free benefit from the insurance policy.
It is important to note that the tax deductibility of Disability Insurance premiums may vary depending on your specific circumstances and the tax laws in your country. Therefore, it is recommended to consult with a tax professional or accountant for personalized advice.
Sources:(
https://www.irs.gov/businesses/small-businesses-self-employed/self-employed-individuals-tax-center)(https://www.irs.gov/forms-pubs/about-publication-535)