Can I deduct the cost of my long term care insurance premium on Schedule C even though it is not >7.5% of my total gross income?

It depends.  In the case of a sole proprietor, long-term care insurance can be deducted as a self-employed health insurance expense.  However, You can only claim the health insurance premiums write-off for months when neither you nor your spouse were eligible to participate in an employer-subsidized health plan.  So, if you were eligible for health insurance from your employer, the standard rule for medical expenses still applies – that in order to claim a deduction (for both LTC insurance premiums, and all other medical expenses, added together), you must itemized deductions on Schedule A, and only the portion in excess of 10% of Adjusted Gross Income (AGI) is actually deductible.  In addition, premiums can only be deducted up to a specific maximum annual dollar amount (which itself is annually indexed for inflation).  Click to see the Eligible Long-Term Care Premium Limits