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.