Are Life Insurance Premiums Tax Deductible at Life

Are Life Insurance Premiums Tax Deductible. Unlike iras and similar retirement savings accounts, life insurance policies are considered personal expenses — so they’re not eligible for tax deductions. Premiums paid for policies above that amount have to be treated as employee wages so you can’t write them.

Most types of life insurance are not tax deductible. However, if you are a business owner and you pay life insurance premiums on behalf your employees, your expenses may be deductible. That’s because the irs views life insurance as a personal expense.

Are Medical Insurance Premiums Tax Deductible? Insurance

This deduction is only available to s corporations and llcs. However, if life insurance is a business expense, premiums may be tax. First, premiums are only deductible if life insurance coverage doesn’t exceed $50,000. So you can assume the answer is no until you find out whether your specific situation is an exception.