I pay my own insurance...can I take deductions for this when I file my return?

Question

I will be filing my taxes on my own this year. Is my premium of $470/month or $5,640/year able to be deducted. Do I get any credit for paying almost $6,000 in health insurance premiums this year?

I do get W-2ed, but I carry my own health insurance policy and pay it completely out of pocket.

Answer 1

No.

Answer 2

Medical insurance premiums are an allowable medical deduction if you itemize. You most likely won't be able to take advantage of it, though. To figure your deduction, you add up all of your medical and dental expenses for the year, then subtract 7.5% of your income - you can only deduct the amount that's over 7.5% of your income. Then you add that to any other allowable itemized deductions that you have to figure your total itemized deductions. You are given what's called a standard deduction without proving or listing anything, and can deduct whichever is higher, standard or itemized. The standard deduction for a single person for 2007 is $5350, so unless your total itemized deductions are more than that, it's to your advantage to take the standard deduction instead.

Answer 3

I'm afraid you have left out many important details. However, assuming you are a W2 employee, and that you pay your health insurance after tax, a portion may be deductible.

Health insurance is considered to be a medical expense. If you itemize deductions, your medical expenses (including the health insurance) exceeding 7.5% of your AGI is added to your itemized deductions.

Rules for the self-employed are different. Long-term care insurance is also subject to special rules, and life insurance is not deductible.

Answer 4

you would have to itemize your deductions and medical costs can only be deducted for the amount that is greater than 7.5% of your Adj Gross Income (bottom of first page of tax return) - If your AGI is 50,000 and your total medical costs (including prescriptions, premiums, etc are 6,000, you can deduct 2250 on your schedule A (6000- 3750 [50000*.075])- You would then have to have enough other itemized deductions (mortgage interest, taxes, etc to exceed the standard deduction in order to have any net benefit

Answer 5

if you itemize on your return, you can claim insurance premiums as a deduction. The total, along with any other medical expenses must exceed a certain percentage rate (don't remember what it is), but the answer is yes.

Answer 6

Impossible.