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Itemized Deductions Schedule-A


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Old 03-03-2008, 09:55 PM
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Health Insurance premium

I pay for Health Insurance through my employer. Is what I pay deductable? I am not reimbursed by my employer for the part of the premium that I pay.



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Old 03-04-2008, 11:26 AM
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Are Health Insurance Deductible?

Well, the IRS rules are that "if you're an employee and your health insurance premiums are paid under a cafeteria-plan arrangement, then these are pretax dollars and would not count as a medical expense in reaching the 7.5 percent of AGI"

In other words, since the medical premiums paid under a cafeteria plan are not considered wages to you (they are not included in your Form W-2), you can't double dip by claiming a deduction. (Source IRS Publication 502)

If, however, you are not part of cafeteria-plan arrangement, and you are actually paying for these premiums out of your own pocket through payroll deduction, then, these premiums paid would be counted as a medical expense in reaching the the 7.5% of AGI.

In other words, these premiums paid by you should really be included in Box 1 of your W-2, and in these circumstances, they would be deductible on Schedule A.

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