Medical portion of auto insurance

[bwa · Accepted solution]

Michigan has such a deduction. It is usually identified on your insurance bill as PIP (Personal Injury Protection) but may have some other name. You would be asked about it in the Michigan state interview.  There is no such deduction on a federal return.

[stac34]

good question. I never thought to include as Medical Insurance Premiums the Med Pay I added voluntarily to my auto insurance policies. I wonder if I can add it to my Medical Insurance Premiums that I paid for regular Medical Care, not car related.

[bwa]

I never thought to include as Medical Insurance Premiums the Med Pay I added voluntarily to my auto insurance policies.

The response above was only to address a specific issue with Michigan state taxes which is probably the only state with that type deduction.  Almost all medical insurance provisions on an automobile insurance policy pay the medical expenses of others and are not deductible because they don't cover you, your spouse or your dependents (a requirement for medical insurance deductions.)

Even the typical Medpay would fail a federal deduction because it covers you and any passengers for any medical expenses due to injuries.  As there is no way to allocate to you just the portion of the premium that covers you and not the other passengers it fails deduction requirements.

It would be nice if it was federally deductible but unfortunately, it isn't.

[4319hb]

You can include portion of your auto insurance premiums that relate to medical expenses. The IRS states on Page 8 of Pub 502 "If you have a policy that provides payments for other than medical care, you can include the premiums for the medical care part of the policy if the charge for the medical part is reasonable. The cost of the medical part must be separately stated in the insurance contract or given to you in a separate statement."

<a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/p502.pdf">https://www.irs.gov/pub/irs-pdf/p502.pdf</a>

The premiums cannot include portion of car insurance premiums providing medical insurance coverage for other people injured by your car or while in your car.

[SweetieJean]

Insurance Premiums You Can't Include
You can't include premiums you pay for:
The part of your car insurance that provides medical insurance coverage for all persons injured in or by
your car because the part of the premium providing insurance for you, your spouse, and your dependents
isn't stated separately from the part of the premium providing insurance for medical care for others

<a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/p502.pdf">https://www.irs.gov/pub/irs-pdf/p502.pdf</a> at pages 9-10