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Not applicable
posted Mar 3, 2021 12:38:20 PM

Health Sharing and deductions

I have a health sharing plan and while it looks as if the premiums are NOT deductible on my Federal taxes, I assume that all my medical bills then would be deductible if I meet the % of income amount necessary?  Since I am filing as if I have no insurance, bills shared would not be considered then and I can deduct them?

0 3 840
3 Replies
Expert Alumni
Mar 3, 2021 1:40:08 PM

Currently, the expenses are not deductible because you are paying some medical expenses for others and vice versa.  Under proposed regulations, payments for direct primary care arrangements and for membership in a health care sharing ministry would qualify as expenses for medical care and may be deductible medical expenses.

Not applicable
Mar 3, 2021 2:00:55 PM

Thanks, MaryK!

Key word here is "proposed".... So no deduction for the sharing 'premiums' I paid to be covered... but yes to the medical bills I had in 2020, if they meet the % requirement, since I have no health insurance.  Correct?

Level 8
Mar 3, 2021 2:18:12 PM

Yes, you are correct in interpreting MaryK 's instructions, provided they exceed 7.5% of your AGI.