Find Out Whether Premiums For Health Insurance Are Paid With Pretax Deductible Dollars

       Health Insurance Premiums

You cannot ignore the possibility of being able to deduct some part of your health insurance premium on taxes. Do you receive insurance by means of your line of work? Then you will be in a position to claim the part of the premium that you pay out of your own pocket. Do you wish to write off the premiums? Then deductions will have to be itemized. This is not the case if you are self employed. Are health insurance premiums tax deductible? To find out, read on.

Know about deductible premiums

In the opinion of the Internal Revenue Service, not every insurance coverage is deductible. It is possible for you to write off the part of the premium that covers the following,

• Drugs
• Hospitalization
• Surgery
• Doctor’s visit
• Dental care

Coverage for items that the IRS does not consider deductible is not included here. For instance, nonprescription drugs.

Familiarize yourself about long-term care

Have you taken a long-term care insurance policy? If so, it will be possible for you to deduct premiums up to the amount permitted by the IRS. For instance, if the 2010 taxes were taken into consideration, the amounts would range from $330 for the year that you were under 40 to $4,110 if you are aged 70 or more. Does the policy cover you and your family members? Do bear in mind that it is limited to each individual. It is not applicable for your total payments.

Details about Deduction

Before you proceed to itemize deductions, you need to calculate your adjusted gross income on the front of the Form 1040 that is given to you. That figure must be multiplied by 7.5. Total the deductible medical bills of your family. This includes the following areas,

• Premiums
• Drugs
• Hospital bills
• Annual checkups

           Pretax Deductible Dollars

Minus 7.5 per cent of the AGI from the total amount. If your AGI is $100,000, 7.5 per cent is $7,500. If you have $11,000 in medical bills, your deductible bills are likely to be $3,500 as $11,000-7,500=$3,500.

Conditions For Self Employed People

In the case of a self employed person paying for medical insurance, it is required to deduct 100 per cent of the premiums for yourself, your partner, those who depend on you and even adult, independent children.

I think answer for the question, “are health insurance premiums tax deductible?” are clear now. Keep visiting for more info on the same.