1.26 Ark. Code R. 51-423(c)(1)

Current through Register Vol. 49, No. 9, September, 2024

Rule 1.26-51-423(c)(1) - 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%