DavidS127
Expert Alumni

Deductions & credits

You deduct your dental insurance premiums as itemized deductions; the TurboTax section is Deductions and Credits>>Medical, unless you are self-employed.  If you are self-employed, and meet the requirements, you can deduct them as self-employed health insurance.

 

Whether it helps lower your taxes depends on whether they are treated as itemized deductions or self-employed health insurance.

 

Itemized deductions for medical expenses, including health and dental insurance premiums, are subject to a 7.5% AGI “threshold”.  In other words, they only “count” to the extent they exceed 7.5% of your adjusted gross income (AGI).  And, even your total medical costs exceed the 7.5% AGI threshold, your total itemized deductions must exceed the Standard Deduction for your filing status to make a difference.  So, a lot of hurdles to clear before health insurance premiums makes a difference in what you owe.

 

Self-employed health and dental insurance, on the other hand, gets deducted directly from income as a part of the AGI calculation, without the 7.5% AGI threshold.  So, assuming you have taxable income, adding self-employed health insurance will lower the tax you owe.  But, even if you are self-employed, you must meet certain requirements to get this favorable treatment for your medical and dental insurance premiums.

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