Health insurance is yet another necessary expense we all must pay monthly or yearly so that we can remain covered as we go about our daily lives. Without it, we could face huge expenses from doctor’s visits to surgeries and procedures and more.
Thankfully, there are some ways you can save money on health insurance. Aside from shopping around to compare quotes and insuring with an independent agency, also see if you are eligible to deduct your health insurance policy from your taxes.
Things to consider include:
Tax deductions may be granted on the premiums that you pay for your insurance.
If your employer or someone else is providing your health insurance, then you cannot take any deductions on your own taxes for those expenses.
If your health coverage is provided by a state plan, you can only take deductions on the portion that you pay, not on the full cost.
Out of pocket medical expenses must exceed 7.5 percent of your annual income to be tax-deductible.
All of this is to say that yes, your health insurance costs are deductible, but only in proportion to what you are paying for it. If you are only paying a fraction of your premiums, or if your employer is buying your insurance, there is no loophole that is going to allow you to collect a deduction on the full amount of what your health insurance costs.
It is never a bad idea to research possible deductions, of course. Talk to your insurance provider (or providers, if you have more than one) to discuss what is and is not tax deductible. You may just be surprised at how many work expenses you have going unclaimed in your home right now. It may take a little extra paperwork and looking for old receipts in the bottom of shoeboxes, but you could very well be sitting on quite a bit of money in tax deductions.
Health insurance is crucial for individuals and families across the U.S., but it is also important to take steps in order to save money so that you can have a better quality of life. Shop around, compare quotes and ask questions to see if you can deduct your health insurance from your taxes. Even a small partial deductible can save you money in the long run, so do what you can to protect you and your family’s assets.