Is Disability Insurance Tax Deductible On Schedule C? 
This is really a great question . For individual disability plans the answer is simple : You can only deduct premium for a policy on yourself if you are the owner of a `` C - Corporation . '' So , if you are a w-2 employee of a company , maybe evenan S-corp owner , youmay notdeduct the premium . This might sound like a disadvantage , but let 's really analyze the concept . If you were able to deduct the premium , that would mean thatyour monthlybenefit would be subject to being taxedin the event that you collected on your policy . So conversely , if you are n't writing off the premium , the benefit amount is tax free ! It is a rule of thumb in the DI industry that carriers will insure up to 60 % of your income . A tax free benefit allows you to maintain a semblance of your lifestyle . 