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jcheatwood16
New Member

I spent 12000 on insurance premiums. Can I deduct this amount?

 
2 Replies
DawnC
Employee Tax Expert

I spent 12000 on insurance premiums. Can I deduct this amount?

If they were medical premiums you paid out of pocket and you itemize taxes, yes!   If they were part of your W-2, no!    In most cases, you can't deduct your share of health coverage costs for a group plan offered through your employer.    The reason?  Most premiums are paid with pre-tax dollars, which means they are deducted from your wages before taxes are applied.  Deducting them again as a medical expense would be "double-dipping."

 

You can only deduct the premiums if your employer included them in Box 1 (Gross Wages) of your W-2. However, this is highly unusual and contrary to the standard practice.

 

Similarly, HSA and MSA contributions that come out of your paycheck aren't deductible either, as these contributions are funded with pre-tax dollars.

 

Medical, dental, and vision expenses are reported on Schedule A and entered in the Deductions & Credits section.

  1. With your return open, search for Schedule A and then select the Jump to link in the search results.
  2. Answer Yes on the Did you spend more than $3,000 on medical expenses in 2020? screen.
  3. Enter your medical expenses, starting with prescriptions, on the following screens.

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SweetieJean
Level 15

I spent 12000 on insurance premiums. Can I deduct this amount?

Likewise, if any if it is already listed on your SSA-1099 or 1099-R forms, they will be recorded when you key in those forms.  Don't enter those amounts again.

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