Yes, you can deduct your supplemental health insurance premiums that you paid with your after-tax dollars.
Good to know. However, I could not deduct the insurance premium for the year 2019. Can I amend my tax return for 2019 which I filed in the year 2020?
@NarendraRawal...Individuals and their families who do not receive a Form 1095-A or Form 1095-C should receive a Form 1095-B. This includes people who receive insurance from health care providers, government agencies and smaller employers who are not required to send the other types of forms. For example, you may receive a 1095-B if you bought health insurance coverage from a health provider outside the marketplaces or participated in a government program such as Medicare or CHIP.
Regarding deducting your medical expenses, if you are self-employed and pay health insurance premiums, you can usually deduct 100% of the cost of these premiums for yourself, your spouse and your dependents. TurboTax will ask you about these premiums in the Wages & Income ("Income & Expenses" if you are using TurboTax Self-Employed) section under Business Items.
However, if you are not self-employed, then you may be able to deduct your medical expenses; however, there are limitations and various thresholds that you must satisfy first. For example, in order to qualify for a tax deduction, you must itemize deductions on your tax return. Itemized deductions are certain types of expenses that you have during the year, such as mortgage payments, medical expenses, and charitable contributions. You have a choice about how you claim your deductions. You can either take the standard deduction set by the IRS, or you can itemize (make a list) of individual deductions. As you enter your expenses, whether they are medical or other expenses, TurboTax will determine for you what is your best option, either to itemize or to take the standard deduction.
Additionally, while TurboTax will do the math for you, it is important to keep in mind that the basic rule is that you can deduct qualified medical expenses that add up to more than 7.5% of your adjusted gross income (AGI). Thus, to the extent your medical expenses do not exceed at least 7.5% of your adjusted gross income, you will not receive any deduction for your medical expenses.