I need to make sure that I understand the situation.
You say that you have a code DD in box 12 on your W-2, right? And that this amount includes both what your employer paid towards your health insurance premiums AND what you paid by means of payroll deduction, right?
It would be normal for an employer to remove the code DD amount from Wages in boxes 1, 3, and 5 on your W-2 before printing. Note that since this is done to all three boxes for Wages, there is no way to know if the employer did or not unless you ask them.
If the employer removed the code DD amount from Wages in boxes 1, 3, and 5, then there is nothing more to do in terms of your health insurance premiums - they have been accounted for by removing them from your income.
If, however, your employer did NOT remove the code DD amount then any amount of health insurance premiums (whether from your employer or from you) that were not removed from Wages in boxes 1, 3, and 5 are deductible on Schedule A in the Medical Expenses section. Of course, you may deduct only medical expenses when they are greater than 7.5% of your Adjusted Gross Income and when your Itemized Deductions are greater than your Standard Deduction. Therefore, most taxpayers won't see any effect on the federal return.
However, because the Standard Deduction is different in some states than on the federal return, we encourage you to enter the Medical Expenses (if they weren't removed from Wages already) in any case, because the states get the values from the federal entries, and the deductions may be applicable to the state.
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