Individual health and medical insurance that is purchased from an insurer can have premiums that vary depending on the coverage and deductible that was selected. In some cases, the premiums that are paid for medical and health insurance policies are a qualified medical expense. Premiums that are paid for certain parts of Medicare are also considered a qualified medical expense. A qualified medical expense can be used as a deduction on an individual tax return.
Medicare Payments
Premiums that are paid for Medicare coverage are considered a qualified medical expense that can be used as a tax deduction on taxes. There are various parts of Medicare that have separate premiums, which include Medicare Part B, Medicare Part C and Medicare Part D. The premiums that are paid for supplemental Medicare coverage or Medigap policies also qualify as a medical expense and can be used as a tax deduction.
COBRA Payments
Individuals that have lost their job or are transitioning to a new one pay the full premium for the medical coverage that is provided. As a result, the premiums payments are considered a qualified medical expenses. This means that premiums for health insurance coverage can be used as a tax deduction for the previous tax year. As a qualified medical expense, COBRA premiums can also be paid from funds that are in a health savings account.
Long-Term Care Premiums
Premiums that are paid for long-term care insurance policies are also considered a qualified medical expense depending on an individual's age. An individual's age is used to determine the deduction limit that applies to each calendar year's taxes. Individuals between the ages of 61 and 70 can deduct a maximum of $3,080 for 2008. Individuals over the age of 70 can deduct a maximum of $3,850 for 2008.
Expenses for Relatives
Individuals that pay health insurance premiums for family members can have those payments count as a qualified medical expense. This means that health insurance premiums that are paid for a child, grandchild, mother or father and any other immediate family member can be used as a deduction on a tax return. Premiums can count as a qualified medical expense when an individual had paid more than 50 percent of a family member's support during the previous year.
Health Savings Accounts
Individuals that have a high deductible health insurance plan or a Cafeteria Plan set up by an employer can set up a health savings account. The type of account uses pretax dollars for qualified medical expenses. Qualified medical expenses that can be used with a health savings account include premiums for group or individual long-term care coverage. A health savings account can also be used to pay for health insurance premiums when an individual is collecting unemployment compensation.
Tags: medical expense, qualified medical expense, health insurance, that paid, qualified medical, used deduction
