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Tax Deductions

Old 01-28-2007, 10:16 AM
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KJS
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Default Tax Deductions

I was doing my taxes on Turbo Tax and it says that health insurance premiums are deductable. I went to the IRS publicaiton on this matter and it seems to support that statement..... anything over 7.5% AGI. Am I reading this correctly? I am going to consult a tax advisor but was curious if anyone here is deducting it.
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Old 01-28-2007, 10:30 AM
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Default Re: Tax Deductions

Health care premiums and out of pocket health care exense (prescription and non precscription meds and medical supplies, etc..) to the extent they exceed 7.5% of adjusted gross income are a schedule A deduction, so whether of not you get ot deduct them depends on if you are itemizing deductions for the year, or claiming standard deduction. If you are self employed the premiums are deductible from your gross income to arrive at adjusted gross income (i.e. on page one of the 1040), if that is the case they are not subject to the 7.5% base.
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Old 01-28-2007, 10:31 AM
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Default Re: Tax Deductions

Whoops, first sentence should read expense not "exense"
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Old 01-28-2007, 10:47 AM
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KJS
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Default Re: Tax Deductions

Okay, thanks, that is how I was reading it.
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Old 01-28-2007, 11:06 AM
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Default Re: Tax Deductions

The great thing about Turbotax is that it will do a comparison between itemized deductions (such as declaring health insurance premiums, etc. ) and taking the standard deduction. Unless your health premiums are unusually high (aren't they all these days) and you have a lot of out of pocket medical expenses, the standard deduction is the way to go for many of us.
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Old 01-29-2007, 12:55 PM
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Default Re: Tax Deductions

Depends, usually between the basics, i.e. property taxes, state income taxes, paid or withheld and mortgage interest, folks are better off itemized than standard. Make sure turbo knows all the information.. That program is only as good as the information fed to it!
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