I retired from a local village and an unused sick time fund was set up that the municipality uses to pay for my health insurance based upon my unused accrued sick time benefits.
Each month the full amount of the health insurance premium is deducted from this sick time fund to pay for the health insurance costs. Eventually this fund will zero out.
The premiums are paid by the village and no money is coming out of my bank account. I get a 1905-C every year from the village.
Are the health insurance premiums paid from this sick bank fund tax deductible for me since I am in essence losing an amount each month and the sick bank diminishes. I do not have access to this sick time bank and the village is the one making the payments. When this sick bank runs out I will have to pay the premiums direct myself.
Thanks!
