Pub 502 on deducting insurance premiums first paragraph is confusing. No help in step-by-step.

Forum|Forum|7 years ago
June 5, 2019
2 replies
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I'm trying to make sure I include medical deductions for all eligible insurance premiums, and could use help interpreting the Pub 502 first paragraph on that topic. Can someone tell me why the following looks contradictory to me but really is not contradictory, perhaps by paraphrasing it for me?

https://www.irs.gov/pub/irs-pdf/p502.pdf, Page 8

Insurance Premiums
You can include in medical expenses insurance premiums you pay for policies that cover medical care. You can't include in medical expenses insurance premiums that were paid and for which you are claiming a credit or deduction. ...

TurboTax Home & Biz Windows

Best answer by MargaretL

The first sentence of that paragraph states "you pay"... so you can deduct any premiums that you paid for with your after-tax dollars. It includes any of your medical, dental, other supplemental insurance. In TurboTax, you would total all insurance amounts and enter it as one insurance premium expense.

Federal Taxes
Deductions and Credits
Scroll down to Medical, select Medical Expenses, enter the total amount for all medical insurance premiums

The second part of that paragraph states " that were paid" - it means the premiums were paid by employer for example, or were not included in wages (therefore it is pre-tax money)... Also, "for which you are claiming credit or deduction" - pre-tax premium is a deduction in a way, you cannot deduct it again (that would be double dipping). Also, self-employed individuals can take a deduction as an adjustment to income... they can't deduct it again as a medical expense itemized deduction.

I hope I clarified the issue, the IRS verbiage is often confusing and needs "translating" just as often.

MargaretLAnswer

Level 12

The first sentence of that paragraph states "you pay"... so you can deduct any premiums that you paid for with your after-tax dollars. It includes any of your medical, dental, other supplemental insurance. In TurboTax, you would total all insurance amounts and enter it as one insurance premium expense.

Federal Taxes
Deductions and Credits
Scroll down to Medical, select Medical Expenses, enter the total amount for all medical insurance premiums

The second part of that paragraph states " that were paid" - it means the premiums were paid by employer for example, or were not included in wages (therefore it is pre-tax money)... Also, "for which you are claiming credit or deduction" - pre-tax premium is a deduction in a way, you cannot deduct it again (that would be double dipping). Also, self-employed individuals can take a deduction as an adjustment to income... they can't deduct it again as a medical expense itemized deduction.

I hope I clarified the issue, the IRS verbiage is often confusing and needs "translating" just as often.