The Internal Revenue Service allows you to deduct insurance premiums paid for health insurance on your tax return. To qualify for this deduction, you must itemize your deductions and complete IRS Form 1040, Schedule A. You can only deduct medical expenses including health insurance premiums that exceed 7.5 percent of your adjusted gross income. If you're eligible to deduct health insurance premiums, you can receive this deduction on your taxes by completing lines one through four of IRS Form 1040, Schedule A.
Instructions
1. Calculate your total nonreimbursed medical expenses including health insurance premiums paid for the current tax year. IRS Publication 502 lists all IRS qualified medical expenses. You cannot include any insurance premiums paid in months where you or your spouse was eligible to participate in an employer subsidized health plan. Total your IRS qualified medical expenses and enter the number on line 1 of the IRS Form 1040, Schedule A. For example, if your qualified expenses total $10,000 for the year, enter that figure on line 1 of Schedule A.
2. Enter your adjusted gross income from line 38 of Form 1040 on line 2 of the IRS Form 1040A, Schedule A. For example, if your adjusted gross income from line 38 was $50,000, you would write $50,000 on line 2 of Schedule A.
3. Multiply line 2 by .075. Continuing the same example, $50,000 x .075 = $3,750. Write this figure on line 3 of the IRS Form 1040A, Schedule A.
4. Subtract the figure from line 3 from the figure from line 1. Continuing the same example, $10,000 - $3,750 = $6,250. Write this figure on line 4 of the IRS Form 1040A, Schedule A. This figure represents your total itemized medical deduction including any health insurance premiums paid.
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