Tax Deductible Medical Insurance Eligibility Explained By Joe Mastriano, CPA.
A deduction is allowed for medical insurance premiums within certain limits. Medical insurance premiums you pay may be included in your medical expenses as tax deductible if the premiums cover:
- Medicare B, supplementary medical insurance for elderly (Social Security Administration provides useful information in calculating the amount of your deduction).
- Medicare A, the part of Social Security that provides coverage for basic Medicare. Certain limits may apply.
- Prepaid insurance premiums you pay before the age of 65 for medical care coverage for yourself and your spouse, or dependent after you are 65 years old.
- Policies that provide coverage only for prescription drugs.
- Policies that pay for the loss or damage of your contact lenses.
- Policies that offer coverage for hospitalization and other medical fees, including surgical fees.
Premiums paid for life insurance policies or for policies providing repayment for loss of earnings, or for the accidental loss life or limb, etc. are not tax deductible.
