Are health insurance premiums tax deductible

 Category: health insurance

Questions and Answers

What about making insurance premiums tax deductible?

Everybody agrees that there's a serious problem with the health care industry, but there's some pretty sharp disagreement on what the solution ought to be. I was thinking today about what might be some good alternatives to Obamacare, and this one occurred to me. If insurance premiums were tax deductible, it would encourage more people to get insurance, thus reducing the number of uninsured Americans. At the same time, it would lower taxes AND make health care more affordable.

I'm not saying this measure alone would solve the problem, but it could be combined with other measures it seems to have some advantages. One other measure might be allowing people in one state to buy insurance in another state, which would increase competition and possibly lower prices. What do y'all think?

The deductible would be nice but would solve so little. I still get denied for all private insurance policies.

And insurance plans already can sell across state lines, provided that they follow the rules in the other states they sell in. It would be stupid a foolish to take away the state's ability to regulate health insurance. Health insurance would only get worse.

Are my insurance premiums for my health care insurance tax deductible?

They are deductible only if you pay them with "after-tax" dollars. If they are paid with "pre-tax" dollars (i.e., your employer deducts the premiums before taking out your federal witholding tax), they are NOT deductible.

Are health insurance premiums and medical bills tax-deductible?

I am self-employed and paid my own health insurance. Also, I had other medical bills not covered by my insurance company. Are either (health premiums or medical bills) tax-deductible?

If the health insurance is "through your business" you can deduct it on the front of your 1040.

The remaining medical expenses go on schedule A--only useful if they exceed 7.5% of your income and you already itemize....

Tax Question: If I pay my own health insurance premiums, is it tax deductible?

I do not get the health insurance that is offered through my employer. I get my health insurance on my own and pay for it with my money that taxes have already been taken from. So I am paying with Post-income taxed money.

It sounds as though you may be able to as long as you itemize and meet all the other criteria. See the link below for more details.

Are medical insurance premiums tax deductible?

My employee sponsored health plan costs me about $7K/year. Will that money qualify as a tax deduction on my federal taxes?

Health Insurance Premiums are usually deducted from your paycheck (section 125) before taxes are figured. In this case, they would not be deductible. Some employers do not have this kind of plan (most do). In that case, the premiums would be deductible on Schedule A. This deduction (and all health expenses) must exceed 7.5% of your adjusted gross income and then the SCH A deductions have to exceed the standard deduction. Refer to IRS publications 17 and 502.

If you were self-employed, all premiums would be deductible. If you have a Health Savings Account, all contributions are pretax.

Is your healthy insurance premium tax deductible? Is it better to do a group plan or individual plans?

I have a small company with three employees - is it better we get a group health insurance plan or all get individual plans? what are the tax benefits? I was told you can deduct more of the premiums if you are a company rather than an individual?

I have been a tax accountant for 27 years. I do not have enough information to give you a reliable answer to your question. However, you should look into a relatively new tax development called the HRA or HSA. Your bank should be able to provide you with information as to how these plans work. They are very flexible and work only when people purchase high-deductible health plans. The HRA or HSA accounts are used to pay out-of-pocket medical expenses (but not the insurance premiums) such as your deductible or co-pays under the plan. They are like IRA accounts for your health. I like them a lot. Please don't be a fool; consult a tax professional. You are in a very complicated area of tax law.

How do I know if Health Insurance Premiums are "pre" or "post" tax earnings on W2's?

I already know that Health Insurance Premiums can be tax deductible.

It depends if the premium is taken out of taxed or nontaxed moeny(earnings). I'm just not sure how to tell the difference when looking at my W2's. Please help and thanks.

Health insurance premiums that YOU pay and not your employer will be in Box 12, Letter "D". If there is a difference between Line One and Line three [or five], subtract letter "D" in Box 12 from Line 3. You should get Line One to the penny. If you do, your health insurance premiums are not being taxed and you can not deduct the premiums. If it does not come out exactly correct, go to your payroll and point this out to them. You may have had to chip in a little for the premiums. You may be able to deduct that, subject to the 7.5% of your adjusted gross income that is subtracted from your health insurance, medical expenses, doctor visits, X-rays and the like.

My employer takes out health insurance deductible after tax - is this legal?

I live in Maryland and my employer takes out health insurance premiums after tax, which costs me about $1500 a year in extra taxes. I'd like them to switch to pre-tax but they said it would be too much work. Can I force them somehow?

No you can't force them. Many companies set up a plan where they can take out health and some other benefits pre-tax, but they aren't required to.

Are health insurance premiums deductible in year paid?

For the first time, I have to pay my retiree health insurance premiums in advance instead of in the month of coverage. I paid for Jan 09 and Feb 09 in Dec 08. I know that medical and dental expenses are deductible in the year paid, but what about insurance premiums. Is that Dec 08 payment deductible in my 08 taxes or my 09 taxes? I can't find a clear answer in Schedule A instructions of Pub 502. - here is my health insurance plan. As I remember they can provide such a service.

Can medical / dental insurance costs including premiums paid PRE-TAX be tax deductible?

Can dental / health insurance premiums paid pre-tax and deducted from my paycheck be considered in itemized deduction?

yes they can, any medical expense including ones from your pretaxed income, can be added on the scedule a. the only exception would be if your employer paid for the insurance. if you pay for it, you can include it. i am a tax preparer and i am sure of this. now the only limit would be getting you over the thresehold of %2 of your agi.

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