NLIC.org

Cecil Said:

I forgot to add my health insurance premiums on my 2007 taxes can I make up for it on my 2008 taxes?

We Answered:

No you can not make up for errors on your 2007 return by making up for the error on your 2008 return. You would have to file an 2007 amended return (1040X). I doubt that it is going to be worthwhile. Health insurance premiums are deductions from taxable income not tax credits applied to your calculated tax liability. Plus your medical deductions must exceed 7.5% of your adjusted gross income to have any effect on your final tax calculation.

That being said don't take my word for it. I am advising you based on typical circumstances. I don't know the specifics of your taxable income or the extent of your schedule A itemized deductions. Always seek professional guidance.

Elizabeth Said:

will we pay taxes on insurance premiums which were paid by employer?

We Answered:

If you are talking about the portion of "healthcare reform" that requires employers to report the value of premiums paid - No, not at this time. However, some people believe that, once the reporting starts, it will be a very small jump to start taxing that amount.

Erika Said:

Can I deduct my insurance premiums on my income taxes?

We Answered:

You can deduct any and all after tax premiums paid for health care, dental care, vision, Medicare, etc.

If you pay for the premiums from your pocket and not payroll withholding you know it is after tax money and can be deducted.

If the premiums come directly out of your pay check you will want to consult with your payroll department about wither it is before or after tax money that is used to pay, If it is after tax money than you can deduct it on your Schedule A subject to a 7.5% floor. If it is pre-tax money than you already got a better tax deduction (with out limits) from your employer and you can not deduct that from your tax return,

Mattie Said:

What about making insurance premiums tax deductible?

We Answered:

The deductible would be nice but would solve so little. I still get denied for all private insurance policies.

And insurance plans already can sell across state lines, provided that they follow the rules in the other states they sell in. It would be stupid a foolish to take away the state's ability to regulate health insurance. Health insurance would only get worse.

Velma Said:

Am I able to write off Health Insurance Premiums for tax purposes at the end of the year?

We Answered:

You may deduct qualified medical expenses you pay for yourself, your spouse, and your dependents, including a person you claim as a dependent under a Multiple Support Agreement. You can also deduct medical expenses you paid for someone who would have qualified as your dependent for the purpose of taking personal exemptions except that the person did not meet the gross income or joint return test.

You deduct medical expenses on Form 1040, Schedule A (PDF), Itemized Deductions. The total of all allowable medical expenses must be reduced by 7.5% of your Adjusted Gross Income. For more information, refer to Publication 502, Medical and Dental Expenses.

Edwin Said:

Why would a company no longer deduct employees medical insurance premiums before tax?

We Answered:

Sounds like they got rid of their cafeteria 125 plan. Company saves in maintaining the maintenance fees of the plan. This will effect you at tax time because it will appear that you are earning more money and therefore taxed at a higher rate...you won't have the tax shield of taking money off the top and then paying taxes on a lower gross income.