topic indemnity plans deductible? in Get your taxes done using TurboTax

indemnity plans deductible?

clk1 — Sun, 02 Feb 2020 16:30:37 GMT

I am self employed and have 3 indemnity plans that supplement my health insurance. A cancer plan, critical illness and wellness (pays out for things like colonoscopy and mammograms). Are these premiums deductible and if so where do I enter them? Are they considered health insurance premiums?

Re: indemnity plans deductible?

DavidS127 — Tue, 04 Feb 2020 14:16:14 GMT

According to the IRS, you can't deduct premiums you pay for:

Policies providing payment for loss of earnings;
Policies for loss of life, limb, sight, etc.;
Policies that pay you a guaranteed amount each week for a stated number of weeks if you are hospitalized for sickness or injury.

Unless your plans fit one of the above definitions, they are deductible as self-employed health insurance premiums. Enter the eligible premiums in TurboTax in the the self-employment income and deductions section. Click the Search on the top row, enter "self-employment health insurance deduction" in the search window, and when you hit return or enter you will see a "Jump to self-employed health insurance deduction" link. That link takes you to the place to enter your health insurance premiums.

The self-employment health insurance deduction is available if you were self-employed and had a net profit for the year, you may be able to deduct, as an adjustment to income, amounts paid for medical and qualified long-term care insurance on behalf of yourself, your spouse, your dependents, and your children who were under age 27 at the end of 2019.

The rules about deducting medical expenses are included in IRS Publication 502 at this link.

Re: indemnity plans deductible?

uw — Sun, 09 Apr 2023 15:39:03 GMT

Thanks much for this info. May I ask where you found this level of detail - including that hospital indemnity plans are excluded? Thanks in advance.

Re: indemnity plans deductible?

AnnetteB6 — Sun, 09 Apr 2023 16:01:41 GMT

Take a look at IRS Publication 502 Medical and Dental Expenses for lists and examples of medical expenses that can and cannot be deducted. Use this link to go directly to the 'insurance premiums that cannot be deducted section':

IRS Publication 502

@uw