Disability insurance is not deductible as a medical expense. However, it can be deducted as a business expense for those who are self employed and own their own Disability Insurance policies.
Keep in mind that if you declare your Disability Insurance premiums as a tax deduction, the disability benefit that would normally go to you tax free in the event of you becoming disabled, would then likely be taxable.
Disability insurance coverage can be deductible as a business expense, generally up to 80% of the employee’s earnings. The business deduction trade off is the disability benefit is taxable to the employee. But in reality, the tax bracket during disability generally goes down, so it ultimately is a good deal for all parties.
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Keep in mind that if you declare your Disability Insurance premiums as a tax deduction, the disability benefit that would normally go to you tax free in the event of you becoming disabled, would then likely be taxable.