Health Insurance Premium Tax
While talking about the health insurance premium tax, various questions are asked by the interested people. And one particular question among them is if the health insurance is deductible. The answer to this question is given below for your convenience.
In some situations, the health insurance premium tax is deductible. You could deduct your health insurance premiums as a part of your entire medical expenses.
Health Insurance Premium Deduction from Tax
However, you can only deduct the premiums that would be paid with after-tax money. For example:
- If your health insurance premiums are completely paid by the government or your employer, you can’t deduct the cost.
- If you have a health insurance via your employer and your own part of the premium is removed from your paycheck pre-tax, you can’t deduct the cost due the fact that the premiums were already tax-free. If you do not have proper knowledge about the kind of tax you pay, be it pre-tax or after-tax, you could ask the human resources department.
- If you purchase a health insurance plan via the health insurance Florida marketplace which is either run by the state government or the federal government, you can only make a deduction on the part of the premium that is being paid by you. You can’t make a deduction on the whole amount or the subsidy price.
- If you have an individual or a family health insurance plan, the entire amount is deductible irrespective of where you have purchased it. You should note that your entire medical expenses, including the premiums must be more than 10% of your gross income which would be deductible.