What can I include under "benefits from self insured medical plans" for Michigan state? Can someone simplify this item for me?

Forum|Forum|6 years ago
May 18, 2020
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Best answer by BillM223

The Learn More link says,

What are benefits from self-insured medical plans?

If you received benefits from a self-insured medical reimbursement plan and your employer reimbursed you, you might be eligible for a Michigan tax break.

If these benefits were included in your income on your federal taxes, we'll help you deduct them on your state taxes.

"Self-insured" means that your employer is covering your medical expenses directly and that you do not have a normal commercial health insurance policy from an insurance company.

If your employer reimbursed you for a covered medical expense, they might have added the amount paid to your income (on your W-2). If so, Michigan allows you to deduct that from income on your state return.

So, do these two things:

1. Ask your employer if your medical coverage is "self-insured" by your employer (it probably isn't because most companies buy insurance from an insurance company).

2. If the answer to #1 is "yes", then ask if any reimbursement to you were added to your wages on your W-2. Only if the amounts were added to your income would you claim them as a deduction in Michigan.

BillM223Answer

Level 15

The Learn More link says,

What are benefits from self-insured medical plans?

If you received benefits from a self-insured medical reimbursement plan and your employer reimbursed you, you might be eligible for a Michigan tax break.

If these benefits were included in your income on your federal taxes, we'll help you deduct them on your state taxes.

"Self-insured" means that your employer is covering your medical expenses directly and that you do not have a normal commercial health insurance policy from an insurance company.

So, do these two things:

1. Ask your employer if your medical coverage is "self-insured" by your employer (it probably isn't because most companies buy insurance from an insurance company).

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msustu

Level 3

Quick question. My answer is "no" to the medical coverage being self insured. When I put "0" in as the benefits received, it won't allow that answer. It says it must be equal or greater than 1. Can you explain why?

Thanks ,

Tom