Taxpayers who itemize deductions on their tax returns may be familiar with the medical expense deduction. However, some people may not know which may include the cost of insurance premiums personal health spending in this category. Taxpayers employees are bound by certain guidelines to deduct health insurance premiums, but the self taxpayers may qualify to deduct your total cost of health insurance.

 personal health insurance

Qualified medical expenses

The Internal Revenue Service  allows taxpayers to deduct medical and dental expenses qualify as itemized deductions. Eligible medical expenses include fees paid by the taxpayer to doctors of all kinds, hospital expenses, costs of medications prescribed paid by the taxpayer and expenses paid by the necessary medical equipment such as wheelchairs, eyeglasses and crutches. Individuals may also deduct the cost of mileage from their homes to medical appointments at a specified rate per kilometer.


Costs eligible health insurance

The health insurance premiums are included as qualified medical expenses if they meet certain criteria. Taxpayers can only deduct the premiums they pay for themselves. Employees benefit from an insurance plan provided by the employer can not deduct expenses paid for it. People who pay for health insurance coverage under Part B or Part D drugs can deduct your premium payments. Insurance premiums for long term care paid for by the taxpayer also qualify as a deduction. The IRS specifically excludes some forms of insurance as tax deductions. Premiums paid for supplementary insurance that provide funds for living expenses if injuries are not deductible. Premiums for life insurance and auto insurance premiums are not eligible for a tax deduction.

Limitations medical expense deduction

For a taxpayer to deduct insurance premiums personal health, your total medical expenses must exceed 7.5% of your gross income adjusted (AGI, for its acronym in English). He can then deduct the expenses that exceed the threshold of AGI. For example, a taxpayer with an adjusted gross income adjusted of $ 32,000 must be qualified to at least US $ 2,400 ($ 32,000 x 0.075) to deduct your medical expenses medical expenses. If only spending $ 3,000 in premiums personal health insurance during the tax year, you may claim only US $ 600 (US $ 3000-2400) of these payments as an itemized deduction. The other US $ 2,400 for health insurance premiums can not be deducted.


Deduction employed health insurance

Self-employed taxpayers who choose to purchase a personal health insurance for themselves or their families may be able to deduct 100% of their premium payments. These deductions are limited to the amount of self-employment income of the taxpayer. Instead of detailing these expenses on your tax return, however, the self-employed are entitled to deduct these premiums of their total income on line 29 of Form 1040 IRS.