Lucy-

While the premiums for a disability policy are income tax deductible by an S corporation owner, the premiums must be included in your personal taxable income (Rev. Ruling 91-26), so there is no real benefit to paying the premiums through your practice.

Andrew is correct that how you paid for your policy's premiums would be investigated at the time of claim.

Perhaps the biggest "tip" that I can provide you with is that, as a female, your policy should have a unisex rate and additional discount. This alone, can save you 40-60% off of the normal female rates which are substantially higher compared to rates for male physicians.

If you want to learn more or would like your policy reviewed, don't hesitate to contact me at (516) 677-6211 or send an email to lkeller@physicianfinancialservices.com.

Larry

Zip Code: 11797