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Does my medical insurance monthly payment count as a medical expense? If not where do I include it for a tax break.

 
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3 Replies

Does my medical insurance monthly payment count as a medical expense? If not where do I include it for a tax break.

Yes Medical Insurance premiums can be an itemized deduction if you don't take the Standard Deduction.  How do you pay it?  Like out of your paychecks or to the Marketplace (Obama) plan?    Those you don't enter.

 

Go to Federal
Deductions and Credits
Scroll down to Medical – Medical Expenses

 

You can only deduct the amount of unreimbursed Medical Expenses you actually paid over 7.5% of your AGI. And then all your itemized deductions have to be more than the standard deduction to get any benefit (so you would only be getting the benefit of the amount that puts you over the standard deduction). And since the Standard Deduction is increased more people will not need to Itemize.

 

For 2022 the standard deduction amounts are:

Single 12,950 + 1,750 for 65 and over or blind (14,700)

HOH 19,400 + 1,750 for 65 and over or blind (21,150)

Joint 25,900 + 1,400 for each 65 and over or blind (27,300/28,700)

Married filing Separate 12,950 + 1,400 for 65 and over or blind (14,350)

MayaD
Expert Alumni

Does my medical insurance monthly payment count as a medical expense? If not where do I include it for a tax break.

Yes. It counts as medical expenses. However, you can deduct only the part of your medical and dental expenses that exceeds 7.5% of the amount of your adjusted gross income.

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Does my medical insurance monthly payment count as a medical expense? If not where do I include it for a tax break.

Insurance premiums paid through payroll deduction for an employer's plan are almost always pre-tax and you can't take a deduction for something that is already not-taxable.

 

Premiums you pay out of pocket (such as Medicare part A, COBRA benefits, a Marketplace plan) can be included as itemized medical expenses if you itemize your deductions on schedule A.

 

If you are self-employed and you purchase medical insurance in your name or the name of the business, there is a small business health insurance premium deduction in the business interview. 

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