* Your total qualified, unreimbursed medical and dental expenses (including premiums and costs like co-pays, deductibles, prescription medications, etc.) must exceed 7.5% of your Adjusted Gross Income (AGI).
* You can only deduct the amount of expenses that exceeds this 7.5% threshold.
* You must choose to itemize deductions instead of taking the standard deduction.
Most taxpayers use the standard deduction as it is often larger than their total itemized deductions.
It's complicated. From google:
* You must pay the premiums with after-tax money.
* Your total qualified, unreimbursed medical and dental expenses (including premiums and costs like co-pays, deductibles, prescription medications, etc.) must exceed 7.5% of your Adjusted Gross Income (AGI).
* You can only deduct the amount of expenses that exceeds this 7.5% threshold.
* You must choose to itemize deductions instead of taking the standard deduction.
Most taxpayers use the standard deduction as it is often larger than their total itemized deductions.
Oh, you’re suggesting making health insurance premiums tax deductible for the individual. I agree that’s a step in the right direction.