Did you know that the average expense for a three-day hospital stay is about $30,000? Imagine taking on a bill like that without proper health insurance coverage! This is one reason why health insurance premiums are going up. The premium is the amount you pay upfront to the insurance company ensuring that your policy stays active so it will be there to cover medical bills.
Did you know that your health insurance premium might be tax deductible? Read on and learn how to take advantage of this great potential tax break.
Need health insurance in Boca Raton? Seeking health coverage in Port St. Lucie or Greenacres? Call us at (561) 420-0280 or click here to learn more. We help our clients in Palm Beach County and throughout the Treasure Coast with all their health insurance needs.
The cost of healthcare coverage itself can be expensive. Now add to that the deductibles you pay and you’ll be sure to want to get as much of that back as you can. Luckily, your premiums and some other medical expenses are tax deductible depending on the type of coverage you have. Even coverage purchased through a COBRA plan qualifies.
What Types of Health Insurance are Tax Deductible?
You may be able to write off some of the out-of-pocket premiums for any policy that covers medical care. This also applies to premiums spent on coverage for any family member. If you receive coverage through the HealthCare Marketplace, you may be able to claim the entire amount you spent on premiums.
Premiums for Medicare Parts B and D are tax deductible. Medicare Part A is also covered as long as you are not enrolled through Social Security. If you receive coverage through your employer, you most likely can’t receive the deductions. This is because most employer-based premiums are paid pre-tax, be sure to check with your HR department to make sure.
What Kinds of Tax Deductions Can You Expect to Get?
The first thing you need to ensure is that you are paying for health insurance with after-tax dollars. The next step is to determine your Adjusted Gross Income (AGI). Your AGI is what the government considers taxable income. Deductions based on exemptable payments you made throughout the year are subtracted from your actual gross income. Certain medical expenses that you pay yourself which exceed 7.5% of your AGI can be deducted from your taxes.
The following is a list of just some out-of-pocket medical expenses that qualify as tax deductible:
- Any premium paid to maintain health insurance coverage
- Doctor visits
- Inpatient hospital care
- Vision care
- Dental care
- Mental healthcare
- Inpatient substance abuse treatment
- Residential nursing home care (as long as the primary reason is for medical care)
- Chiropractic visits
- Chiropractic visits
- Transportation costs for medical care
- Service animals
- Medical equipment
Let Absolute Best Insurance Help You Get the Coverage You Need!
Don’t go through the process alone, let one of our agents help you navigate the application process at no additional charge. We will review your current plan and tell you what it covers and what you need. Call Absolute Best Insurance in Greenacres, Port St. Lucie, and Boca Raton at (561) 420-0280 or click here.