“Can I deduct health insurance premiums?” Self-employed Americans across the country have wondered this at one point or another. Depending on the way you receive your health insurance and how you pay for it, you may qualify to have your medical expenses deducted this upcoming tax season.
Eligible Premium Deductions
If you’re eligible for a tax deduction on your health insurance premiums, you may find yourself saving more than you expected this coming tax season. Here are some instances in which you may qualify for deductions:
- If you are self-employed and pay for your own health insurance, you can deduct premiums. This tax deduction includes premiums paid for medical and dental insurance. Your policy can cover just yourself or extend to your spouse or dependents. This tax deduction includes premiums paid for medical and dental insurance.
- If you used after-tax money for insurance, you can claim some medical expenses, including your health insurance premiums. However, if you paid your expenses with pretax money, you won’t be eligible to do so.
- If you have Medicare or Medigap and are self-employed, the IRS can deduct your premiums. This includes premiums for all four Medicare Parts (A, B, C, and D).
- If you have long-term care insurance, you can deduct your premiums for long-term care, whether you work for someone or are self-employed.
To know if your premiums qualify for a deduction, contact a licensed health insurance agent.
Even if you don’t qualify for a health insurance premium deduction, you may qualify for other deductions on your medical expenses. By itemizing your deductions and including medical expenses, you can deduct eligible healthcare costs that are greater than 10% of your adjusted gross income on your taxes.
Here are the five most common deductible expenses:
- Doctor’s visits
- Copays on doctor visits or prescription medicine
- Dental treatment
- Medical equipment
- Eyeglasses, contact lenses, and supplies
HealthMarkets Insurance Agency understands how costly health insurance can be, but there are ways that policies can work within your budget. That’s why we have created resources where you can learn about more options to deduct your health insurance premiums.
Our agents can help you find affordable plans or plans with subsidies. Give us a call today at (800) 360-1402.