Is Health Insurance Payments Tax Deductible?

are health insurance payments tax deductible

The Internal Revenue Service has published a bulletin that can help anyone who is paying for health insurance understand when their health insurance payments are tax deductible. Most people don't realize that any kind of insurance, including health insurance, is taxable. The only exception to this rule is if you are self-employed or if you get a large group policy with expensive coverage options. Those two groups typically pay less in taxes than the population as a whole does.

To figure out if your health insurance is tax deductible, contact a certified public accountant and get help figuring out your payment. Be prepared to give him all your tax return information. In particular, you will need your Form 1040, which explain your premium, any deductible, and any additional credits you can claim. Certified public accountants are good at estimating future tax deductions, so they can provide you with a rough estimate of how much your premiums might be in the future.

If you are unsure of whether or not your health insurance is tax deductible, you can always ask for an appraisal. Appraisals are not particularly hard to do. When you are getting a copy of your tax return for the current year, visit the IRS Web site and enter your information. You will likely find that there are several options available to you on the left side of the screen. Click on the "option" link for each type of coverage that you have and look over your return to see what they tell you about your tax liability.