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February 7, 2020
Question

I am not self employed so can I deduct Health Insurance premiums?

  • February 7, 2020
  • 1 reply
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Can I deduct Health Insurance premiums like Medicare Part B and Medicare Supplement premiums?  My wife and I are both retired and we also had COBRA payments that we paid last year as well. We are not self employed.

    1 reply

    February 7, 2020

    Yes, you can deduct all your health insurance premiums, including Medicare Part B and Medicare supplement premiums as Medical expenses.

     

    You can claim all medical and dental bills, prescription drugs and health insurance premiums paid out-of-pocket as Medical Expenses in Schedule A - Itemized Deductions

     

    For tax year 2019, Medical Expenses are subject to the 7.5% rule and you can only claim the excess over 7.5% of your Adjusted Gross Income.

     

    Please note that Itemized Deductions will only "help" when they exceed your standard deduction.

    For 2019, standard deductions are:

    For a taxpayer under 65, not claimed as a dependent

    • $12,200 for Single
    • $24,400 for Married Filing Jointly, or Qualifying Widow(er) with dependent child
    • $18,350 for Head of Household
    • $12,200 for Married Filing Separately
    • If you are over 65 or blind, add $1,300 for each instance if married or add $1,650 each instance if single or head of household

     

    In TurboTax, you can enter Medical expenses by following these steps:

    • In TurboTax, open your tax return
    • Click on Federal in the left-hand column, then on Deductions & Credits on top of the screen
    • Scroll down to All Tax breaks, locate the section Medical and click on Show more
    • Click Start next to Medical Expenses.
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