Health care insurance premiums, including dental and vision insurance premiums, and other medical expenses that you paid with out of pocket funds and were not reimbursed are an eligible medical expense that you can deduct using Schedule A for itemized deductions. However, only your total medical expenses that are greater than 7.5% of your Adjusted Gross Income (AGI) can be deducted. Your total itemized deductions reported on Form 1040 Schedule A must be greater than the standard deduction for your filing status to have any tax benefit.
Standard deductions for 2022
To enter your medical expenses -
Click on Federal Taxes (Personal using Home and Business)
Click on Deductions and Credits
Click on I'll choose what I work on (if shown)
Scroll down to Medical
On Medical Expenses, click the start or update button
Or enter medical expenses in the Search box located in the upper right of the program screen. Click on Jump to medical expenses
Yes, but that almost never happens. Are you sure?
The only case where this is routine is the case of domestic partner benefits. In that case, the employee's share of the premium should be deducted pre-tax but the DP's share of the premium must be deducted after-tax. In every other case I can think of, the employee's share should be deducted pre-tax. If the employer is truly deducting the employee's share after-tax, then the employer is harming not only the employees but themself (since deducting the premiums pre-tax reduces the employee and employer share of social security and medicare tax).
Yes, unfortunately, I'm sure. I just got off the phone with HR and they confirmed it. Now I'm wondering if I can amend returns to claim it, but I'm afraid it might fall under the 7.5% rule for medical expenses and I'll never hit that amount. Thanks for your response.
I'm afraid it might fall under the 7.5% rule for medical expenses
Most likely it does. The only time I've seen anyone able to actually deduct medical expenses as an itemized item on their personal tax return, is if they have "MAJOR" out-of-pocket medical expenses not covered or paid by insurance. For example, a knee replacement not covered by insurance can easily cost in excess of $15K. With that amount, your income would have to be less than $112,500 for the year and only the amount that "exceeds" 7.5% of your income would be deductible as an itemized deduction.