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Health Insurance Premiums And Tax

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Are Health Insurance Premiums Tax Deductible

                       Health Insurance Premiums

It is tax time again and many have the question ‘are health insurance premiums tax deductible’ in their minds. If you need the answer to the question ‘are health insurance premiums tax deductible’, you can read ahead. This article discusses the tax deductions on health insurance premiums. The deductions depend on who you are and for whom you work for.

Self-Employed

If you are self employed, the health insurance premiums for you are often tax deductible. The health premiums that you pay for yourself and your dependents are deducted from tax. They will not be deductible if you, your spouse, and other dependents are covered by some other employer’s  group health insurance plans.

Health Savings Accounts

If you are working for a company that is offering health insurance as a part of what is known as a cafeteria plan, you may get a health savings account that is commonly referred to as HAS account. The contributions that you make to your HAS account is 100 percent tax deductible and the limit for this deduction is 5950 dollars for a family coverage and 3,00 dollars for individual coverage. This is as per the data of 2009.

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Adjusted Gross Income

    Health Insurance Premiums And Tax Deduction

If you are not a self-employed person and you do not work for a firm that offers health insurance with a cafeteria plan, the Internal Revenue Service (IRS) will allow you to count dental and health insurance premiums as part of the 7.5% of your adjusted gross income that need to be spent on health care, before any of the out of pocket expenses are deducted. The dental and health insurance premiums can be counted towards that 7.5%. The person will also be able to deduct a long list of health-related expenses that can include prescription medications, and some other optional surgical procedures like the laser eye surgery that is done to correct problems in vision. To see the list, you can visit the IRS website.

You can take a look at what IRS allows you to deduct for the health-related items and you should take care to keep the completed records. If you have any more questions regarding this topic, you can take advice of a tax advisor. You may also go online and search for your queries. There are numerous websites over the Internet that can give you helpful advices on your tax queries and will help you to clear your doubts.


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