Monthly Healthcare Premiums

[mahgallo]

My wife and I pay out of pocket for our monthly healthcare premium and are not yet 65.  Can we include the monthly healthcare premium cost as a medical-related deduction?  We know that we can only include healthcare expenses that exceed 7.5% of our AGI.

[xmasbaby0]

Yes the out of pocket costs that you pay for health insurance can be entered as a medical expense if you are itemizing deductions instead of just using your standard deduction.

MEDICAL EXPENSES

The medical expense deduction has to meet a rather large threshold before it can affect your return. The amount of medical (including dental, vision, etc.)  expenses that will count toward itemization is the amount that is OVER 7.5% of your adjusted gross income. You should only enter the amount that you paid in 2025—do not include any amounts that were covered by insurance or that are still outstanding.  Of course, your medical expenses plus your other itemized deductions still have to exceed your standard deduction before you will see a difference in your tax due or refund.

To enter your medical expenses go to Federal>Deductions and Credits>Medical>Medical Expenses

2025 STANDARD DEDUCTION AMOUNTS

SINGLE $15,750  (65 or older/legally blind + $2000)

MARRIED FILING SEPARATELY $15,750  (65 or older/legally blind +1600)

MARRIED FILING JOINTLY $31,500  (65 or older/legally blind + $1600)

HEAD OF HOUSEHOLD $23,625 (65 or older/legally blind + $2000)

[SteamTrain · Accepted solution]

Yes..you can.

If you go thru the medical expenses area, there are specific places that ask about healthcare premiums you pay out-of-pocket.

You just enter the totals that you paid out-of-pocket for the premiums and any other medical expenses, and the software will determine how much of that exceeded 7.5% of your AGI, and the software will only include the excess.   

Of course, that amount is only used if ALL your itemized deductions exceed the Std Deduction for for your filing status for 2025.  For MFJ and not-yet 65 for either of you, that  Std Ded is $31,500 for 2025 taxes.

[mahgallo]

Thanks for your reply!

[mahgallo]

Thanks for the reply!

[mahgallo]

Thanks for your reply.