Medical insurance is deductible if you are self-employed as self-employed health insurance or if you itemize your taxes.
If you are self employed, both your dependents private insurance and your Medicare and any Medigap coverage would be deductible.
If you are not self-employed, you would still be able to deduct both, however, if your total itemized expenses are not greater than your standard deduction, then you would not benefit from the medical insurance premiums.
Itemized expenses include mortgage interest, state and local taxes up to $10,000, medical expenses in excess of 7.5% of your AGI, charitable donations, gambling losses up to winnings and casualty and losses in excess of 10% of you AGI with the first $100 not counting towards the loss. Your health insurance and all medical expenses are only deductible for the amount that is over 7.5% of your AGI. This means if your AGI is $50,000, then the amount that is over $3,750 is deductible.
Then your total itemized expenses would need to be greater than your standard deduction below in order to benefit from your insurance premium payments.
The 2023 Standard Deductions are as follows:
- Married Filing Joint (MFJ) $27,700
- Married Filing Separate (MFS) $13,850
- Head of Household (HOH) $20,800
- Single $13,850
Blind and MFJ or MFS add $1,500
Single or HOH if blind add $1,850
Deducting Insurance Premiums if you are self employed.
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