How to Deduct Workers' Compensation Premium from Federal Tax Form 1040

It's almost Tax Season, and many employers ask whether workers' compensation insurance premiums can be deducted. For the answer, read below:

"Small businesses that are sole proprietorships, partnerships or limited liability corporations are allowed to deduct costs for workers' compensation insurance from their federal and state taxes. The deductions are documented on Internal Revenue Service Schedule C, which is filed with the small business owner's Form 1040. Workers' compensation premiums are only deductible when they are required by the state government, and the rules vary widely from state to state."

Article by Terry Lane, Demand Media 
Source: http://smallbusiness.chron.com/deduct-workers-compensation-federal-tax-form-1040-68009.html
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