Can I Deduct My Health Insurance Premium From My Taxes?

Health insurance premiums are deductible in some circumstances.

Health insurance premiums may or may not be tax-deductible. Several situations will determine whether they are tax-deductible. You'll pay the premiums either way, but how the premiums are paid and what type of health coverage you pay for are direct indicators of potential tax deductions.

Considerations for Deductions

For fully tax-deductible premiums, you must pay the premium yourself with after-tax dollars.

Significance of Group Insurance

If you are a member of a group insurance policy, only the amount of the premium paid by you with after-tax dollars is deductible.

Long-Term Care Insurance

Long-term health care premiums are deductible on a sliding scale. For the 2010 tax year, they start at $340 at age 40 or less and go up to $4,110 at age 71. The deductions increase a bit for the 2011 tax year.

Warning

You must have medical expenses equal to more than 7.5 percent of your federal adjusted gross income to qualify for deduction. Any medical expenses paid out of pocket, including after-tax medical insurance premiums, fall into this category.

References

• IRS.gov: Medical and Dental Expenses