Do Not Overlook Health Insurance Tax Deductions

Are you overlooking one big deduction? Many people do not realize they can deduct the cost of their major medical insurance and some other medical expenses. Make sure you are not paying too much in taxes.

Let us look at some ways to deduct your insurance rates from your income taxes!

Do you get a medical plan at work where your employer pays some of the cost? If so, you may still be able to deduct some of your costs. If you pay for your part of the premium through an employer pretax plan, you are already getting a tax break. Your contribution will reduce your income. You will have less income to get taxed on. You also get your income reduced because of other medical expenses you pay through this type of pretax plan. These could be medical, dental, or even vision related. Even if your job does not have a pretax plan for medical expenses, you can deduct any medical expenses will total more than 7.5 percent of your adjusted gross income. You can also take advantage of tax deductions for qualified long term care insurance (LTCi and dental insurance. Other medical expenses, that you have to pay out of your pocket, also go into that total. It is important to keep track of your medical expenses every year so you do not miss out on this tax break!