Are Health Insurance Premiums Tax Deductible in 2015?

Health insurance premiums are deductible in 2015 if you are accounting for your premiums properly. All health insurance plans have different premium payment schemes, and you must document how your premiums are paid. The premiums for certain policies are not deductible because of their attachment to a tax break in the policy plan. Continue reading to learn about tax deductions for your health insurance plan.

#1: Do You Get A Tax Break?

Tax breaks on your insurance plan will give you back a portion of your payment every month as a one-time discount. You can deduct the amount you have paid, but you cannot deduct the full amount of your premiums. The tax returns you file will ask for the amount of your payment, the amount of your discount and the total you have paid over the course of the year.

Your deduction equals the amount you have paid over the course of the year, but you must properly calculate how much you have paid before the year closes. The insurance company can provide you with a list of your payments for the year, and you may use those numbers to properly fill out your tax forms.

#2: What Is Not Deductible?

There are certain health insurance plans that do not feature deductible premiums. Government plans that are subsidized do not offer the same kinds of tax breaks you can get from other programs, and you are told explicitly that your premiums are not deductible. Study your insurance plan to ensure that you understand how much of the premium is deductible.

#3: Do All Your Plans Count?

The dental and vision insurance you carry in conjunction with your traditional plans are deductible in most cases. The dental and vision insurance must meet the same criteria as your health insurance policy. Policies that are not the same as your health insurance policy will not follow the same rules for deductions.

#4: Changing Plans

You are welcome to change your health insurance plans at any time to garner the deductions you are looking for, but there is no guarantee that a new policy will provide you with more deductions. You must read about the policies before you start shopping, and you should consider policies that provide higher subsidies.

#5: Obamacare

Anyone who is covered under the ACA must ensure proper recording of the payments you make. You will receive a tax deduction on your final tax return, and you should consider how easy it will be for you to manage the deductions every year. You get more money back from these policies, but they are giving you a higher discount at the same time.

Looking for the right sort of healthcare policy should include the deductions you want on your final tax return. There are many policies that will provide you with the deductions you need, but you must choose those policies carefully when shopping.