As an individual buyer (non-small biz) of health insurance, can I deduct the premium from my taxes?

Question

I know about the 7.5% med. deduction threshold... my real question is deducting on the ins. premium as an individual -- can I?

I earn self employment income from my business as partner. The business provides health insurance to employees and partners. I want to elect out and buy my own. Can I deduct it "for AGI"?

Answer 1

First of all you must determine if you should use standard deductions or itemize your deductions. If you are using standard deduction the answer is NO! Those type expenses are already considered. If you itemize you may add the cost of health insurance and long term care insurance to your medical expenses. They will be subject to an exclusion or limitation of 7.5 % of your AGI. Which means that the exclusion must be exceeded before there is any net benefit.

Answer 2

You can't take the same deduction that a small business operator can. They get it above the line (adjustment.) You would include it on your Schedule A, subject to the 7.5% of AGI rule.

Answer 3

As a medical deduction, yes. Medical deductions are subject to a 7.5% AGI limitation, meaning that only those that exceed 7.5% of your AGI are deductible.

Answer 4

There used to be a provision to do what you are proposing but it has expired many years ago.