Qualified Health Insurance Premiums are any and all payments that you made for health insurance. If you deducted these expenses on your federal tax return, you may still get a deduction.
It’s very difficult to claim any medical deductions on your federal income tax return because you have to meet the requirement that your medical expenses exceed 7.5% of your adjusted gross income. In Missouri, you don’t have that. If your health insurance isn’t already exempt from taxes, you can claim your health insurance as a deduction on your Missouri State income tax return.
Can you deduct premiums paid out of pocket (after tax dollars) if those premiums are reimbursed by your former employer as a retirement benefit?
but where did the value automatically there come from?
If you made an entry in the Itemized Deductions (Medical Expenses), it would transfer to the state.
why is the amount for missouri qualified health insurance premiums pre-filled in turbo tax?
If u are on social security, that field is prefixed with your part b premium u entered from your social security form. You can also enter any unreimbursed supplement premiums in the other premiums field.
My husband gets medicare but NOT social security. My daughter and I are under the ACA. Is there an upward limit on this credit? I can't find that amount $1752 listed anywhere. I did NOT itemize.
In general there is no limit- your husband's Medicare MAY qualify because the premiums were not deducted from social security, but if he received RRB there is a reduced deduction.
Our entire family is under the ACA. We did not itemize, where did this number auto-populate from and how do I verify its accuracy?
This happened to me - I couldn't figure out where the amount came from until I finally realized that we had to pay more into the ACA (my husband is self-employed and got more money than we expected last year) and when I did the math it came out exactly right - Turbotax figured it out but didn't explain what it was doing...
When figuring Qualified Health Insurance Premiums, do you go by when it was paid or by the month of the coverage. I always have to pay before the 1st of each month, so I paid January 2018 in December 2017. Because my coverage changed during the year...I went from COBRA coverage to a Health Marketplace Plan, my premiums changed drastically, so it makes a big difference whether I count my December 2017 payment for January 2018 or my December 2018 payment for January 2019 on my 2018 taxes.
FYI - In 2019, the IRS allows all taxpayers to deduct the total qualified unreimbursed medical care expenses for the year that exceeds 7.5% of their adjusted gross income. Beginning in 2020, the threshold amount increases to 10% of AGI.
It is any post tax premiums paid by you, either directly or through payroll deductions.
If your employer takes the premiums out pre-tax (before taxes are calculated on income) then they are not deductible. In this situation, you have already received your credit..
Qualified Health Insurance Premiums are all payments that you made for health insurance. If you deducted these expenses on your federal tax return, you may still get a deduction.
In Missouri, there is no floor on health care expenses (Federal has a 7.5% floor). If your health insurance isn’t already exempt from taxes, you can claim your health insurance as a deduction on your Missouri income tax return.
How do I know if my health insurance is exempt from taxes?
It depends. If your Health Insurance Premiums are paid all or in part by your employer, it is likely that they are paid from your "pre-taxed" wages and are therefore "exempt from taxes." Here is a link with more information: Health Insurance Paid by my Employer
If you pay for your own premiums you may be able to take them as an itemized deduction if you have sufficient medical expenses and itemized deductions. You would be able to deduct the portion of Health Insurance and other qualified medical expenses that are in excess of 7.5% of your adjusted gross income. Here is a link that describes in more detail what can be deducted and what cannot. 2019 Medical Expenses
If you pay for your own premiums and you are self-employed, you may be able to deduct your premiums as "self-employed health insurance. This deduction is limited by the net income of your self employed business. Here is a link with more details on this deduction: Self Employed Health Insurance Deduction
What is 'qualified' specifically? I paid out of pocket for short-term coverage all year. Is this ACA compliant only insurance, or is this any health insurance that is not paid pre-tax? There would be no document given (like the 1095) for this situation.
Qualified Health Insurance Premiums are any and all payments that you made for health insurance and that are deductible on your Federal tax return.
Health insurance premiums made on a pre-tax basis are not deductible on either tax return.
Can anyone explain why the qualified insurance premium deduction in Missouri is reduced when the premiums are paid as a deduction from your SS check? The deduction gets reduced by the same percentage as the SS benefits are taxed. This makes no sense to me as the SS benefits are separate from Medicare. My spouse pays Medicare premiums but does NOT get SS benefits and gets a 100% qualified insurance deduction for Missouri. Nobody at the MO Dept of Rev can answer my question, not can anyone at the SSA.
They won't let you deduct the insurance premiums that are paid from income that is not taxable. Since your spouse does not receive social security, her insurance premiums are being paid out of taxable income.
Do you know why the qualified insurance deduction in Missouri is reduced if they are paid out of SS benefits? This does not make sense to me because if you paid them separately they are 100% deductible. I understand that my SS benefits are not 100% taxable, but still don't know why that impacts my qualified health insurance deduction. Thanks for your help.
Thanks for your reply. But why does it matter whether the premiums are paid out of SS or just out of your own pocket? The cost of the insurance is the same either way. They don't ask me where the premiums are paid from if not from a SS check. Just makes no sense to me.
All or a portion of your social security income is not taxable. Most tax deductions are only allowed against taxable income. So, if you pay the insurance from the portion of your social security income that is not taxable, you would be getting a tax deduction from income that is not taxable.
Thanks for the quick reply. Your response explains this from a taxing authority perspective, but the prior year (2019) when my spouse did not receive SS benefits she also paid Medicare premiums and got a 100% deduction in Missouri. Just because she started to receive SS benefits in 2020 the deduction becomes limited?? Just a strange way for the state to be looking at it. Medicare premiums are deducted from her SS check for simplicity purposes (two transactions combined into one, which makes sense), not because that's the source to pay the premium. She would have to pay that premium regardless of whether she got SS benefits or not. I will try to find someone in the Missouri DOR to make my point and see if they have any flexibility to consider my position.