butch1221
New Member

WHERE and WHAT can I enter the following: "Life Insurance", "Prescription plans", Medicar plan G" "Cancer policy"

 
Vanessa A
Employee Tax Expert

Deductions & credits

(Edited 12/31/19 @ 11:14AM EST)

Life insurance is not deductible.  Cancer policies that pay a set amount like AFLAC are not deductible.

 

Prescription plans and medicare G  are tax-deductible.  If you have a cancer rider on your policy that gives you extra coverage to pay for cancer care, this would be deductible. 

 

You will enter your premiums paid by clicking 

  • Federal
  • Deductions and Credits
  • Show More next to Medical
  • Start next to Medical Expenses
  • Walkthrough until you get to the section for medical insurance premiums
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Deductions & credits

Life Insurance premiums are not deductible on or reported on a tax return.

Cancer policy premiums are not deductible on or reported on a tax return.

 

Medicare Premiums paid for Part B, Part C and Part D are tax deductible.  The premiums paid for a Medicare Plan G plan is tax deductible.

Those premiums paid are entered on Schedule A as itemized medical deductions.  

However, only your total medical expenses that are greater than 7.5% of your Adjusted Gross Income (AGI) can be deducted. Your total itemized deductions reported on Form 1040 Schedule A must be greater than the standard deduction for your filing status to have any tax benefit.

 

Standard deductions for 2019

  • Single - $12,200 add $1,650 if age 65 or older
  • Married Filing Separately - $12,200 add $1,300 if age 65 or older
  • Married Filing Jointly - $24,400 add $1,300 for each spouse age 65 or older
  • Head of Household - $18,350 add $1,650 if age 65 or older

To enter your medical expenses -

  • Click on Federal Taxes (Personal using Home and Business)
  • Click on Deductions and Credits
  • Click on I'll choose what I work on (if shown)
  • Scroll down to Medical
  • On Medical Expenses, click the start or update button

Or enter medical expenses, sch a in the Search box located in the upper right of the program screen. Click on Jump to medical expenses, sch a

Deductions & credits

according to this they are deductible if your not directly or indirectly the beneficiary of the policy.

 

Employee benefit programs. Employee benefit programs include the following. • Accident and health plans. • Adoption assistance. • Cafeteria plans. • Dependent care assistance. • Education assistance. • Life insurance coverage. • Welfare benefit funds. You can generally deduct amounts you spend on employee benefit programs on the applicable line of your tax return. For example, if you provide dependent care by operating a dependent care facility for your employees, deduct your costs in whatever categories they fall (utilities, salaries, etc.). Life insurance coverage.

You can't deduct the cost of life insurance coverage for you, an employee, or any person with a financial interest in your business, if you’re directly or indirectly the beneficiary of the policy. See Regulations section 1.264-1 for more information.

Deductions & credits

@gateman Your reference is for an employer of employees and what they can deduct as an expense their business tax returns.

The question is referring to what an individual can deduct as a medical expense on their personal tax return.

Deductions & credits

yes and I am an employee of the company and I'm not the beneficiary, you being the owner means your not an employee, its a job like everyone else? 

also I'm a one man operation, I don't have employees I have to do all the work same as if I had some.

its not really health insurance is it?

Deductions & credits

@gateman 

 

Unless you issue yourself a W-2 from your corporation you are NOT an employee.  So if you are a sole proprietor filing a Sch C and you have no waged  employees that reference is not for your situation.  

Deductions & credits

I don't see a separate area for prescription plans. Do I add it to the amount I pay for my supplemental insurance premiums?

 

CatinaT1
Employee Tax Expert

Deductions & credits

Yes.  It would be considered insurance.

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