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Level 1
posted May 18, 2020 11:46:27 AM

What can I include under "benefits from self insured medical plans" for Michigan state? Can someone simplify this item for me?

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1 Best answer
Expert Alumni
May 18, 2020 12:47:21 PM

The Learn More link says,

"

What are benefits from self-insured medical plans?

 

If you received benefits from a self-insured medical reimbursement plan and your employer reimbursed you, you might be eligible for a Michigan tax break. 

If these benefits were included in your income on your federal taxes, we'll help you deduct them on your state taxes.

"

 

"Self-insured" means that your employer is covering your medical expenses directly and that you do not have a normal commercial health insurance policy from an insurance company. 

 

If your employer reimbursed you for a covered medical expense, they might have added the amount paid to your income (on your W-2). If so, Michigan allows you to deduct that from income on your state return.

 

So, do these two things:

 

1. Ask your employer if your medical coverage is "self-insured" by your employer (it probably isn't because most companies buy insurance from an insurance company).

 

2. If the answer to #1 is "yes", then ask if any reimbursement to you were added to your wages on your W-2. Only if the amounts were added to your income would you claim them as a deduction in Michigan.

4 Replies
Expert Alumni
May 18, 2020 12:47:21 PM

The Learn More link says,

"

What are benefits from self-insured medical plans?

 

If you received benefits from a self-insured medical reimbursement plan and your employer reimbursed you, you might be eligible for a Michigan tax break. 

If these benefits were included in your income on your federal taxes, we'll help you deduct them on your state taxes.

"

 

"Self-insured" means that your employer is covering your medical expenses directly and that you do not have a normal commercial health insurance policy from an insurance company. 

 

If your employer reimbursed you for a covered medical expense, they might have added the amount paid to your income (on your W-2). If so, Michigan allows you to deduct that from income on your state return.

 

So, do these two things:

 

1. Ask your employer if your medical coverage is "self-insured" by your employer (it probably isn't because most companies buy insurance from an insurance company).

 

2. If the answer to #1 is "yes", then ask if any reimbursement to you were added to your wages on your W-2. Only if the amounts were added to your income would you claim them as a deduction in Michigan.

Level 3
Jul 14, 2020 7:03:37 PM

Quick question. My answer is "no" to the medical coverage being self insured. When I put "0" in as the benefits received, it won't allow that answer. It says it must be equal or greater than 1. Can you explain why?

 

Thanks ,

Tom 

Expert Alumni
Jul 14, 2020 7:11:15 PM

Try leaving it blank.  It won't accept a zero entry.  @msustu

Level 3
Jul 14, 2020 7:25:36 PM

Thank you! I did that and it worked. The reason I thought I had to input a number is because the 2018 comparison showed $0. Thanks again!

Tom