Can I deduct medical expenses that were a section 125 (cafeteria plan)?

Question

These medical payments were made from deductions from my paycheck and reduced my taxable income.

I'm current preparing my tax return and am itemizing my deductions and wish to include this item under "medical expenses".

Answer 1

Since it wasn't taxed in the first place, you would be considered to be "double dipping."

You've already saved the taxes, this is really one of the good deals out there. And chances are this isn't enough to hit the minimum percentage requirements to allow you a deduction.

Note that the amount paid for medical insurance as part of a plan may be deductible for some state income tax purposes. I pay about $100 a month and my employer pays much more than that. I don't hit the Federal minimum, but the state has different requirements, so it reduces my state income tax liability.

Answer 2

No, section 125 medical expenses were paid pretax. In other words, you did not count this in your taxable income, therefore, you do not get to deduct this from your income taxes.

You also are not supposed to deduct any expenses you pay for medical that you later get reimbursed (say by the insurance company (like in an auto accident, not your fault)). Doesn't matter if they paid you the same year or a year later.

Answer 3

No, you didn't pay taxes on that money in the first place, so can't double dip by taking the expenses off your taxes again.

Answer 4

It means that you can have money taken out of your check to pay for various things, such as health insurance, and not pay tax on that money.

Answer 5

Yes, if you are able to itemize your deductions on a Schedule A.

Answer 6

No, only doctor's visits, prescriptions, milage, co-pay, and premiums can be deducted.