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Not sure if this is the correct forum to post this in, but I couldn't find one dealing directly with taxes.
Okay, I've read that Health Insurance Premiums are tax deductible if total health expenses exceed 7.5% of your AGI. Then I read that sometimes they aren't. Here's the scenario:
We're with a small business (3 employees) and on a group plan. The company pays $200 a month toward our health insurance premium, and the rest of our family's premium ($265) is deducted from our paycheck. So is that $265 that we pay out of pocket every month tax deductible (assuming all of our healthcare costs put together equal more than 7.5% of our AGI)? And what about the copayments and deductible that we pay out of pocket, do those count toward the 7.5% as well?
Ichoro's equation is correct, but from your example one thing is still unclear. Is the part of the premium that you are responsible for (the $265) taken from your pay pre-tax or post-tax? If the premiums are deducted pre-tax, then you are already receiving the value of the deduction for tax purposes, and you cannot include them again when figuring out your Schedule A itemized medical expenses. If this is the case, you can only deduct copays, co-insurances, deductibles, Rx, etc and not the premiums.
I am not good in finance and tax but i am sure that whatever describe on it will be right and it will helpful to many of the people who want to save their money on tax.
----------------------------------- Battery Travel Charger | Cell Phone Cases
Anything to sneak a crap advertisement on, huh?
Comical.
Does this type of douche bag behavior actually get you any customers?
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