Am I able to write off Health Insurance Premiums for tax purposes at the end of the year?
I am looking to purchase my own health insurance instead of going through my company. I know that the company takes out the cost on a pre-tax basis, but their insurance is not the greatest. If I do decided to sign up for health insurance, will I be able to use the cost of my own health insurance as a deduction fo tax purposes?
August 3rd, 2010 at 10:25 am
I think so
August 3rd, 2010 at 10:53 am
If you talk to your accountant,. he can explain it fully.
Basically, you can deduct medical & dental expenses, insurance premiums, medical related travel, as part of yout itemized deduxtions. If you don’t itemize, you’re out of luck.
August 3rd, 2010 at 11:14 am
You may deduct qualified medical expenses you pay for yourself, your spouse, and your dependents, including a person you claim as a dependent under a Multiple Support Agreement. You can also deduct medical expenses you paid for someone who would have qualified as your dependent for the purpose of taking personal exemptions except that the person did not meet the gross income or joint return test.
You deduct medical expenses on Form 1040, Schedule A (PDF), Itemized Deductions. The total of all allowable medical expenses must be reduced by 7.5% of your Adjusted Gross Income. For more information, refer to Publication 502, Medical and Dental Expenses.
August 3rd, 2010 at 11:36 am
Your medical and dental expense on your itemized deduction schedule is reduced by 7.5% of your adjusted gross income. Your pretax health coverage through your employer is in effect 100% tax free(as if you deduct the full amount). Hence your tax savings will be greater through your employer provided plan even if you itemize on schedule A.
August 3rd, 2010 at 11:53 am
Health insurance is not deductible for individuals unless done through a Section 125 plan. Even in that case, you can’t deduct the expense, you can only pay for it with pre-tax dollars.
August 3rd, 2010 at 12:35 pm
The following paragraph is taken from an IRS publication regarding Itemized Deductions.
Medical expenses include insurance premiums paid for accident and health or qualified long-term care insurance. You may not deduct insurance premiums for life insurance, for policies providing for loss of wages because of illness or injury, or policies that pay you a guaranteed amount each week for a sickness. In addition, the deduction for a qualified long–term care insurance policy’s premium is limited. Refer to Publication 502 , Medical and Dental Expenses.
August 3rd, 2010 at 1:29 pm
Yes. Ins premium, doctor visits, prescription drugs, contact lenses, and necessarily surgery or purchases are deductible. Over the counter drugs and unnecessarily surgery like boob jobs are not.
You add them all up, substract any medical reimb and thats your medical tax deduction. but it is limited to 7.5% of your Adjusted Gross Income (which is your income – adjustments), so if you make too much money you most likely cant take the benefit.
If you want to save more money, add in you over the counter drugs.