Did you know that your insurance premiums could be tax deductible? In many cases, insurance premiums are paid using pre-tax money, such as in the case of employer-sponsored health insurance plans. Insurance premiums paid with pre-tax dollars are not deductible. But insurance premiums paid for with your own money, including health insurance purchased on an exchange or even directly from the insurance company itself, are deductible.
Deductions for insurance premiums only apply to your health insurance premiums themselves, not to related insurance products such as disability insurance premiums or car insurance premiums on policies that cover injury and medical payments.
Have questions about whether your insurance premiums are tax deductible? Stuck with tax problems after incorrectly claiming health insurance premiums as a deduction on last year’s return? Taxation Solutions, Inc. can help! We work with taxpayers across the Indianapolis area to provide expert help and tax resolution services for issues large and small. Contact us now to learn more.