Deducting Health Insurance From a Tax Return

by Mark Kennan ; Updated July 27, 2017
You must file form 1040 to claim health insurance costs.

Items you will need

  • Form 1040
  • Schedule A

If you pay for health insurance for yourself or your family out of your own pocket, you can deduct those costs from your federal income taxes. The deduction is an itemized deduction, so you can only claim the deduction if you forgo the standard deduction. However, the deduction is reduced to the amount that exceeds 7.5 percent of your adjusted gross income. The remainder will combine with your other itemized deductions to reduce your taxable income.

Step 1

File your taxes using form 1040 and attach Schedule A. Schedule A lists your itemized deductions. You cannot claim the deduction if you do not itemize your deductions.

Step 2

Report the total amount of your health insurance costs on line 1 of Schedule A. You can only include health insurance costs for which you are not reimbursed.

Step 3

Copy your adjusted gross income from line 38 of your form 1040 tax return onto line 2 of your Schedule A.

Step 4

Multiply your adjusted gross income by 0.075 and report the result on line 3 of Schedule A. For example, if your adjusted gross income equals $39,000, you would multiply $39,000 by 0.075 to get $2,925.

Step 5

Subtract the result from Step 4 from your total deductible health insurance costs to calculate your deduction and report the total on line 4 of Schedule A. In this example, if your total costs equal $4,925, you would subtract $2,925 from $4,925 to find your deduction equals $2,000.


  • You can include any other qualified medical expenses, such as doctor's visits, prescription drugs and treatments, in addition to your health insurance costs when claiming the deduction.

About the Author

Mark Kennan is a writer based in the Kansas City area, specializing in personal finance and business topics. He has been writing since 2009 and has been published by "Quicken," "TurboTax," and "The Motley Fool."

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