Are Cobra Payments tax deductible

[pattersj]

I paid cobra premiums Jan-Dec for my Healthcare in 2013 - are these payments tax deductible?

[diptaragdatta]

Is it applicable for 2015 also?

[Saewpi74]

cobra payments tax deductible for 2015

[RachaelL]

Hello pattersj,

I found some information for you about deducting COBRA premiums. I hope this helps!

If you are paying the COBRA premiums with out of pocket funds, you can deduct the premiums paid as an eligible medical expense on Schedule A as an itemized deduction. Only your total medical expenses greater then 10% of your AGI can be deducted if you are under the age of 65. If you are age 65 or older then the AGI limit is 7.5%. Your total itemized deductions must be greater then your standard deduction to have any tax benefit.

• Go to Federal Taxes.
• Click on the Deductions and Credits tab.
• Click on Explore on My Own.
• Scroll down to Medical.
• On Medical Expenses, click on the start/update button.
• Follow the prompts.

If you need further assistance or have any other questions about your return please feel free to comment on here and I will help you as best as I can. Goodluck! Have a wonderful day!

Thank You for choosing TurboTax,

Rachael

[heinzmanax]

What is AGI?

[RachaelL]

heinzmanax:

AGI starts with your total income, including items such as wages, tips, interest, miscellaneous income, and unemployment compensation.

Then certain deductions you qualify for are subtracted from your total income to arrive at your AGI.

Deductions are important to reducing your total income. Some common deductions are student loan interest, tuition and fees deductions, and allowed IRA contributions.

Your AGI is shown on your Form 1040 line 37, or Form 1040A line 21.
---Rachael 🙂

[kothari-ravi]

Hi Rachael, i pay Cobra premiums every month which is around approx 1K / month, can i save tax on this premiums ?

[DoninGA]

@kothari.ravi - Health care premiums are deductible as an itemized medical expense on Schedule A.  If your total itemized expenses are not greater than your standard deduction for your filing status then there is no tax benefit.  See answer above.

[HRB]

"Only your total medical expenses greater then 10% of your AGI can be deducted"  so, are premiums a medical expense?  i've read numerous articles on this and they seem to imply, yes they are, but when any of these articles  list qualified medical expenses, premiums are never -  ever - listed.  It seems they aren't an actual  "medical expense", but for tax purposes it sounds like they are and do count toward the goal to exceed the 10% when you can start deducting.  Can you be the first to answer this?  

[VolvoGirl]

Yes insurance premiums are deductible under medical.  You have added on to a 5 year old thread.  Now it’s over 7.5% of your AGI.

Do you think you will have enough to itemize this year?  This year the Standard Deduction will be doubling so many people will be switching to the Standard Deduction.  And there is a max 10,000 limit (5,000 MFS) of property tax and state taxes "SALT".

FAQ on 2018 changes <a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/4482394-how-will-tax-reform-affect-my-2018-federal-tax-return">htt...>

For 2018 the standard deduction amounts are:
Single 12,000 + 1,600 for 65 and over or blind
HOH 18,000 + 1,600 for 65 and over or blind
Joint 24,000+ 1,300 for each 65 and over or blind
Married filing Separate 12,000 + 1,300 for 65 and over or blind

[VolvoGirl]

See, <a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/2895189-what-kinds-of-medical-expenses-are-deductible">https://ttl...>

And <a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/1900682-can-i-deduct-medical-dental-and-vision-expenses">https://t...>

[SusanY1]

Yes, you enter these as health insurance premiums in Deductions & Credits, under Medical Expenses.

@Carol70

[glosborne]

What's COBRA then?

Health Savings Account

Medical Savings Account

Medicare Advantage MSA

None of the Above?

[CatinaT1]

None of the above.  Cobra is the continuation of health insurance.  The premiums paid for Cobra are a deductible medical expense, (assuming you are itemizing and meet the threshold).

[glosborne]

Alright, so COBRA premium payments, as a continuation of my coverage, are deductible medical expenses then?