As qualified medical expenses, you can deduct any medical insurance premiums you pay post tax. That means if your insurance premiums are deducted from your wages before your income tax withholdings, they are not deductible. But any medical insurance premiums you pay with earnings that have been taxed can be included with your other qualified medical expenses when you calculate your tax deductions.
Both primary and supplemental health insurance (including Medicare part B) premiums can qualify for this deduction. Prepaid health insurance insurance premiums also qualify as a medical expense in the year they are paid, with a few exceptions.
Premiums for the following types of insurance are not tax deductible as part of your medical expenses:
- Policies covering lost earnings
- Life insurance
- Car insurance that provides medical coverage for individuals injured in an accident
- Policies covering loss of life, disability, etc.
Have questions about deducting health insurance premiums or other qualified medical expenses? Don’t hesitate to ask. Taxation Solutions, Inc. is proud to be your resource for tax issues large and small! Call now to learn more.