Premiums for medical insurance and medical expenses that you pay out of pocket with after-tax money are deductible as a medical expense itemized deduction. That may or may not provide a tax benefit. First, only the amount of such expenses that is more than 10% of your Adjusted Gross Income (7.5% if over 64) is actually deductible. And, itemized deductions provide no tax benefit until all of them added together are more than the standard deduction for your filing status.
Standard deductions for 2016
- Single - $6,300 add $1,550 if age 65 or older
- Married Filing Separately - $6,300 add $1,250 if age 65 or older
- Married Filing Jointly - $12,600 add $1,250 for each spouse age 65 or older
- Head of Household - $9,300 add $1,550 if age 65 or older