Is my health insurance premium that is deducted from my state government pension tax deductible?

[SharonD007]

It depends.  If your health insurance premiums are paid  for with after-tax money, you may be able to deduct them if you itemize and your medical deductions exceed 7.5 % of your AGI. If your premiums were paid for with pre-tax money (not taxed on it), you can't deduct the premiums on your tax return.

Your itemized Deductions must be greater than your Standard Deduction to itemize. Review the following TurboTax articles to determine if there are additional items that you can deduct on your Schedule A. 

20 Common Tax Deductions: Examples for Your Next Tax Return, What Are Itemized Tax Deductions?, and Standard Deduction vs. itemized deductions: Which Is Better?

[eldcroot]

Yes, thank you.

However, I need to ask for additional help.

I paid over $4000 in health insurance premiums in 2024.

This was deducted from my State of Michigan monthly pension payments.

100% of my pension is taxable.

On my State of Michigan income tax form under income reductions, I can enter the medical expenses from my auto insurance premiums.

Also under income reductions, there is a spot to enter health insurance premiums paid but TurboTax won't let me. It states that I had $0 from my Federal return so it's $0 from my State of Michigan return. 

How/where can I enter my $4000+ in health insurance premiums as an income reduction for my State of Michigan income tax return?

Thank you.

[BillM223]

"Also under income reductions, there is a spot to enter health insurance premiums paid but TurboTax won't let me." - What does this mean? Are you in the medical expenses section for Schedule A? 

What is TurboTax doing when you try to enter the health insurance premiums here on the federal return?

[eldcroot]

I was in the section of the Michigan State Income tax return that allowed me to enter the medical premium amount of my auto insurance. I can't find that part of the form now when I review my Michigan State income tax form. 

On my Federal return, I don't see where to enter health care premiums paid. We use the standard deduction as TurboTax calculated it as higher than my itemized deductions.

[MonikaK1]

If you have potentially deductible medical expenses, enter them on the Federal return under Deductions & Credits. The itemized deduction information that you enter in the Federal return will transfer to the State return in case the deduction is allowable there.

When you open the Deductions & Credits section, depending on the version, Medical or Medical Expenses is where you would enter insurance premiums. Open that section and answer the questions. Your total medical expenses including insurance would have to exceed 7.5% of your Adjusted Gross Income in order to be deductible, and added with your other itemized deductions would need to exceed your Standard Deduction.

See this article for more information regarding deductible medical expenses.

@eldcroot