Some medical premiums are deductible from your taxes as either an above-the-line deduction or an itemized deduction, but be sure you understand which medical premiums are deductible in the first place.
Deductible medical premiums include those that cover health insurance for hospital visits and treatments, prescription drugs and certain long-term care programs. You cannot include expenses for life insurance, disability insurance or the part of your medical insurance that covers injuries from a car accident for you and your family.
Your medical expenses, including medical premiums, exceeding 7.5 percent of your adjusted gross income are deductible. For example, if your adjusted gross income was $40,000, any medical bills over $3,000 would qualify as an itemized deduction.
If you are self-employed, you can deduct certain medical premiums for yourself and your immediate family as an above-the-line deduction. The amount deductible is based on your age and subject to limitations; check the business expenses section of the Internal Revenue Service (IRS) website for current amounts.
Above-the-line deductions are taken in addition to your standard deduction. In order to claim itemized deductions, you cannot take the standard deduction. You must file a Schedule A to itemize your deductions.
You cannot deduct medical premiums that are paid for by someone else, such as an employer. You also cannot deduct expenses paid with pre-tax dollars.
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