I generally do not itemize when I file for taxes since my medical expenses are not too high. This year also, my medical expenses are not high but I've paid COBRA premium. Is that tax deductible?
Can I claim tax benefits for cobra premium whether or not I itemize? Please explain how.
When does the expenditure come into account in regards to tax accounting - the year we make the payment or the year for which we made the payment? For example, if I pay my COBRA premium for December of 2006 in January of 2007, should I account for it in 2006 or 2007?
2007-03-29 12:39:06 · 3 answers · asked by Pearl J 2 in Business & Finance ➔ Taxes ➔ United States
If your medical expenses (including COBRA premiums(are more than 7.5% of your adjusted gross income, then you would be able to deduct them if you itemize and only if you itemize.
How do you do it? You fill in the number on the 1040 Schedule A. See the source link for mroe information.
It's based on when you made the payment, so that would count for 2007.
2007-03-29 12:48:11 · answer #1 · answered by Vegan 7 · 2⤊ 0⤋
Cobra Premiums Tax Deductible
2016-11-03 01:50:52 · answer #2 · answered by Anonymous · 0⤊ 0⤋
COBRA premiums are the same as any other health insurance premium. Anyone may deduct them in the year they're paid to the extent that they exceed 7.5% of your adjusted gross income and your standard deduction. If you are operating a business and pay for your health insurance (or your employees') you may claim an above the line deduction.
2007-03-29 13:22:59 · answer #3 · answered by Scott K 7 · 0⤊ 1⤋
COBRA insurance premiums are tax deductible as itemized deductions only. So if you do not itemize, you would not be able to take the deduction. The payments would be deductible in the year they were actually paid, not incurred.
2007-03-29 12:53:08 · answer #4 · answered by tma 6 · 2⤊ 0⤋
u must itemize for sure. your COBRA premiums considered to be medical expenses. then if your medical expenses exceed 7.5% of your adjusted gross income, this will be your medical deduction. medical deduction can be taken in the year you PAID for it. Example: your income is $40K. your medical expenses should be more than $3K to put in on your schedule A(itemized deduction)
2007-03-29 14:37:16 · answer #5 · answered by alikmal 2 · 1⤊ 0⤋
You could claim this as a medical expense if you itemize. It's deductible in the year that you paid it. Only medical expenses that exceed 7.5% of your income can be deducted.
2007-03-29 12:49:15 · answer #6 · answered by Judy 7 · 3⤊ 1⤋
As long as you pay the premium out of pocket and can itemize your return.
2016-03-20 03:21:35 · answer #7 · answered by Anonymous · 0⤊ 0⤋
If you do not itemize, then no, you cannot deduct them on your fed. return. In some states (MI. as an ex.), you can deduct the payments on your state return. You deduct the amount you paid in the year you paid it.
2007-03-29 12:51:55 · answer #8 · answered by barbara 2 · 0⤊ 2⤋
nope cobra is a ultra high dollar ripoff insurance for those that had insurance through their employer and have since been terminated. Stay away from them.
2007-03-29 12:44:18 · answer #9 · answered by Anonymous · 0⤊ 6⤋