How to Write Off Hazard Insurance on Your Taxes
- 1). Determine whether the hazard insurance premiums that you paid are are for business or personal use. If they are the former, total your premiums and add them in with your other deductible premiums. Deduct them on line 15 of federal Schedule C if you are self-employed.
- 2). Deduct your hazard insurance premiums as unreimbursed business expenses on Schedule A if you are an employee, you paid hazard premiums out of pocket and were not reimbursed by your employer. These expenses are deductible in excess of 2 percent of your adjusted gross income.
- 3). Deduct a portion of your homeowner's insurance premiums paid on Form 8829 if you work from home. The amount of premium you deduct will be calculated according to the same percentage as any other home-based expenses you incur that are reported on this form.
- 4). Save your receipts or monthly statements showing premiums paid in case the IRS needs you to prove that you paid them. Keep them in a filing cabinet and copy them onto blank paper to facilitate faxing or scanning. Group receipts by like kind and copy all of them onto one sheet if possible. Keep the originals and send copies to the IRS.
