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Deduct medical insurance premiums?
Q: Can I deduct medical insurance premiums that are paid out from my paycheck?
A: The answer depends on whether these payments are pre–tax or after–tax. If you've agreed to make a salary reduction contribution to a flexible spending arrangement and use these amounts to cover your medical premiums or you opt to have premiums paid from a cafeteria plan in lieu of cash compensation, you cannot deduct these amounts. You are not taxed on the income used to make the payments so no deduction can be claimed.
But if you use part of your taxable wages to pay medical insurance, you can deduct your payments. They are treated as miscellaneous medical expenses deductible to the extent that medical expenses exceed 7.5% of your adjusted gross income as long as you itemize your deductions. For more information about medical expenses, see IRS Publication 502, Medical and Dental Expenses, at www.irs.gov.
But if you use part of your taxable wages to pay medical insurance, you can deduct your payments. They are treated as miscellaneous medical expenses deductible to the extent that medical expenses exceed 7.5% of your adjusted gross income as long as you itemize your deductions. For more information about medical expenses, see IRS Publication 502, Medical and Dental Expenses, at www.irs.gov.
Some issues discussed in the expert forum are complex and continually changing.We recommend you consult a professional advisor about your specific circumstances, needs, and applicable laws. More details.