Can I reduce my taxable pension income by 100% of health insurance premium cost deducted from my after tax pension payment?

[u00rzo1]

I know I can include cost of health insurance in my itemized deductions, but in order to see any benefit from doing so it would have to be over 10% of my adjusted income and only the part Obote that treshhold would qualify. I am looking for something similar to what I see on w2 where taxable income is reduced by full cost of health insurance premium I as employee had paid.

[ToddL · Accepted solution]

Insurance premiums paid from  your pension income can only be deducted as a Medical Expense on Schedule A, if you itemize. As you pointed out, there are severe limitations on how the Medical Expense deduction is treated for tax purposes. 

Gross pension income is pre-tax, meaning that the entire amount is subject to tax (unless you made after-tax contributions to the plan). From that point forward, you can only deduct insurance premiums as a Medical Expense on Schedule A. 

When you obtained insurance through your employer, you were able to pay the premiums with pre-tax dollars. Your gross income was first reduced by the cost of the premiums before being subject to tax.