Saturday, January 1, 2011

Money spent on health insurance through work be deducted

Money spent on health insurance through work be deducted?
Can this money spent on health insurance at work be deducted on the Itemized Deductions Schedule A under Medical and Dental Expenses.

Thanks Thanks a lot everybody. I hate this time of year with the taxes.
United States - 5 Answers
Random Answers, Critics, Comments, Opinions :
1 :
It was deducted before the withheld was figured. It is called cafeteria plan.
2 :
To the extent that you paid using after tax money and to the extent all your post tax medicals payments are greater than 7.5% of your AGI, yes, you can deduct the amount in excess of the 7.5% of your AGI.
3 :
Normally not. The vast majority of employer-sponsored health insurance plans are paid for with pre-tax dollars under a Section 125 benefits plan. You've already received tax benefit for those premiums so you cannot deduct them again on Schedule A. While it's possible to have those premiums deducted post-tax there's normally no tax benefit in doing so. Some employers may report the total health insurance premiums in box 14 but it's not a requirement. You need to check with your payroll department and see if the health insurance is part of a Section 125 plan or not. That said, if you were given an election sheet when you became eligible for the coverage, or at the annual open season (usually in November) then your plan is a Section 125 plan. That sheet allows you to designate the premiums as pre or post tax. The default is pre tax and I can't think of a good reason why you would ever want to have them deducted post tax.
4 :
It probably was already deducted from your taxable income on your w2. Do you have anything showing in box 14? If so than that is probably what you paid for health insurance and it's already been deducted from your income. You can't deduct it on Schedule A because that would be like double dipping.
5 :
if you pay for it

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