topic PRIVATE HEALTH INSURANCE OVERSEAS FILER in Deductions & credits

PRIVATE HEALTH INSURANCE OVERSEAS FILER

HAPPINESS25 — Thu, 06 Mar 2025 11:37:59 GMT

Hello,

I am an Overseas Filer and would like to know if I buy a private health insurance policy to cover me in my country of residence, can I take a tax deduction when I file with the IRS?

Thank you.

Re: PRIVATE HEALTH INSURANCE OVERSEAS FILER

MaryK4 — Thu, 06 Mar 2025 14:17:39 GMT

Yes, you can deduct the cost of foreign health insurance as a medical expense on your U.S. tax return.

Re: PRIVATE HEALTH INSURANCE OVERSEAS FILER

HAPPINESS25 — Fri, 07 Mar 2025 11:31:57 GMT

Hello,

Thanks for your reply but, before spending thousands of euros on a private health insurance policy, could you kindly just reference it?

Is there any published IRS documentation that states that U.S. Overseas filers residing in a foreign country, who buy a local long-term health insurance policy, can take a deduction for it on their U.S. tax return?

Thanks very much & kind regards.

Re: PRIVATE HEALTH INSURANCE OVERSEAS FILER

DaveF1006 — Fri, 07 Mar 2025 13:09:20 GMT

There's no authoritative reference that specifically says that foreign private is/is not deductible. Addtionally, if you read Publication 502 about health insurance, it doesn't say you can't get health insurance from a foreign country. It doesn't make any distinction between foreign-sourced or US sourced providers.

Re: PRIVATE HEALTH INSURANCE OVERSEAS FILER

HAPPINESS25 — Mon, 10 Mar 2025 14:12:45 GMT

Hello thanks very much for your reply which appears to be one of "deductive reasoning".

The only issue is that an Overseas Filer - who is also required to file taxes in his country of residence - can most likely (depending on the country, of course), take a deduction on their foreign residing country's tax return as well so, in theory, can they take a deduction for the same healthy insurance premium twice on both tax returns? or would this be considered dishonest ?

Thanks & kind regards

HAPPINESS25

Re: PRIVATE HEALTH INSURANCE OVERSEAS FILER

Vanessa A — Mon, 10 Mar 2025 15:22:16 GMT

When you say overseas filer, are you a US Citizen or Non-Resident Alien that has US sourced Income? If you are a Non-Resident Alien that has US Sourced Income, you would need to file a form 1040NR. TurboTax does NOT support the 1040NR, but our partner Sprintax.com does.

If you are a US Citizen living abroad, then deducting this from your taxes that you paid in a foreign country would not affect your US tax deduction as they are two separate taxing entities. This would be similar to states that allow itemized deductions. You can claim the health insurance as a deduction on both your state and your federal returns. So if you are itemizing your return, then even if you took a credit on your foreign return, you would still be able to claim it on your US return as the two have no affect on each other.