Are Health Insurance Premiums Tax Deductible for Retirees?
"Are
health insurance premium tax deductibles for retirees?" is one of the most reckoned
by retirees. The average retirement couple can spend less than $ 250,000 in
health care in their retirement. Medical expense is one of the largest amounts
of money to spend for retirees. It is important and helpful to know if the
expense is deductible. The deduction is generally available for premiums of
health insurance and premium for long-term health care.
Health Insurance is
deductible!
The premium of your health insurance can be added into
the deductible health care expenses. It is including
Medicare premiums. The payment must be based on after-tax income. Just like any
other America's taxpayers, the non-public safety retirees may include their
premiums into the deduction tax forms. The deduction reduces the total amount
of the taxable income.
With the
amount of income that is not as much as their income while still working, this
deduction will certainly be very beneficial for retirees because they will not
be too burdened with the amount of fees they have to pay.
If the
retirees itemize their deductions, health care (including dental health care)
expenses are deductible from their income tax on schedule A of their tax
return. The downside is they must itemize, and the total amount of their health
care expenses exceeds 7.5% of their income before they get tax benefit. It is
better if they can get the premiums of their health insurance as they work. The
medical and dental expenses deduction rules are changed in 2013. Under the new
rules, the 10% of the AGI deductible number is on health (medical) and dental
expenses. The prior rules give 7.5% so you and other retirees may deduct more.
The benefits of having
deductible health insurance premium
The benefits to be gained from the deduction of the
health insurance premium for retirees are financial benefits. This means that
the retirees can have more money to allocate to other things; such as savings
or for daily life. The amount of the deduction is actually not too large (and
only in particular health services), but it is definitely a useful thing for
retirees.
Although the retirees get "cheaper
rates," they will still get the same healthcare as others who pay
non-deductible insurance premiums. Now you already know the answer to the
question "Are health insurance premium tax
deductibles for retirees?” It is better for you to get more information
and make sure your health insurance premiums are deducted.
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