Taxation of Individual Health Insurance Proceeds

[Oscar Zilch]

I have an individual dental indemnity policy for which I pay the premiums on an after-tax basis. I have attempted to deduct these premiums, along with all other medical expenses, on Schedule A but have not met the deduction threshhold for many years. Am I correct that any proceeds from claims filed would not be taxable, and would not be treated as a reduction of health insurance premiums since previous premiums have not been deducted?

Thanks for any thoughts.

[MinhT1]

Proceeds from health insurance claims aren't taxable as they are reimbursements of out-of-pocket medical expenses.

They don't reduce the amount of health insurance premiums that you can claim as Medical expenses, but they reduce the amount of out-of-pocket medical expenses that you can claim.