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If you are paying the COBRA premiums with out of pocket funds, you can deduct the premiums paid as an eligible medical expense on Schedule A as an itemized deduction. Only your total medical expenses greater then 10% of your AGI can be deducted if you are under the age of 65. If you are age 65 or older then the AGI limit is 7.5%.
1 Best answer. UPDATED FOR TAX YEAR 2019. Yes. You can deduct the amount you paid for COBRA premiums under medical expenses. Please keep in mind the following about deducting your medical expenses, including health insurance: You don't get the benefit if you are taking the standard deduction.
However, the premiums from your COBRA policies will be deductible as an itemized medical expense deduction See the following from IRS Publication 535: Self-Employed Health Insurance Deduction You may be able to deduct the amount you paid for medical and dental insurance and qualified long-term care insurance for yourself, your spouse, and your ...
Incidentally, COBRA insurance premiums are one of the things that you are allowed to pay for from an HSA. If you want, you can deposit money in the HSA and then withdraw it the next day to reimburse your COBRA premiums make your premiums tax free. You can’t take a itemized tax deduction for premiums that you pay from the HSA, but you will ...
I retired in July 2016. I had a FSA with my employer. Contributions to FSA are tax deductible. Thru payroll, $1350 was contributed to my FSA. My taxable income reported on my W2 reflects that $1350. However, I continued my medical and FSA thru COBRA. I made an additional $1250 contribution to m...
Self-employed health insurance policies must be in the name of the business. Sole Proprietors can meet this requirement if the policy is in their name. COBRA policies are in the name of the former employer and do not qualify for the self employment health insurance deduction. This says COBRA goes on schedule A.
The intent of those payments is that the employee will use the funds to pay the COBRA premiums. When the employee pays for COBRA premium to the insurance company, those payments made by the employee are considered tax-deductible to the employee. When filing taxes, COBRA premium payments can be deducted as medical expenses.
COBRA payments are not deductible as business expense. Per IRS, the insurance plan must be in your name to qualify, COBRA is in your former's employer's name. But you can deduct COBRA payments as your personal medical expenses: Federal Taxes; Deductions and Credits
1 Best answer. Premiums for medical insurance and medical expenses that you pay out of pocket with after-tax money are deductible as a medical expense itemized deduction. That may or may not provide a tax benefit. First, only the amount of such expenses that is more than 10% of your Adjusted Gross Income (7.5% if over 64) is actually deductible.
Make COBRA medical insurance payments tax deductible Yes, paying medical insurance premiums for COBRA out of pocket is deducible when itemizing on Schedule A. This is reported in Federal Taxes, Deductions & Credits, Other Tax Breaks, Medical Expenses .