Social Media Strategist, Disability Insurance Services, California
First off, make sure you ALWAYS consult your financial advisor or CPA for the tax laws regarding insurance premium payments. The average person cannot deduct disability insurance premiums. However, business owners with a corporation can pay premiums through their corporation. But at the end of the year, they would need to claim the premiums paid as income.
Disability Insurance premiums, if paid by the "employer" (and in this case you as the self employed), would create a TAXABLE benefit to the insured should a claim occur. But because you are a Self Employed Individual, Individual disability income insurance premiums
paid by a Sole Proprietor are not deductible, and the benefits received are tax-free.
If you would like to see an insurance company answer to your question, click on the following link for Mass Mutual's overview: http://www.massmutual.com/efiles/di/pdfs/di90032.pdf
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paid by a Sole Proprietor are not deductible, and the benefits received are tax-free.
If you would like to see an insurance company answer to your question, click on the following link for Mass Mutual's overview: http://www.massmutual.com/efiles/di/pdfs/di90032.pdf