Ark. Code R. 26-51-423 - 1(c)(1) (1997) - Business Expenses - Medical Care Insurance Premiums

A self-employed taxpayer can deduct as a business expense on U.S. Form 1040, Schedule C, a percentage of the premiums paid during the tax year for insurance which constitutes medical care for the taxpayer, his spouse and dependents. The applicable percentage begins with 40% in 1997 and increases up to a maximum of 80% in 2006. IRC Sec. 162(l). The percentages are as follows:

1997......................

40%

2004

60%

1998 through 2002 .....

45%

2005

70%

2003 ...........

50%

2006 or thereafter .......

80%