Business & Finance Taxes

Deducting Health Insurance From a Tax Return

    • 1). File your taxes using form 1040 and attach Schedule A. Schedule A lists your itemized deductions. You cannot claim the deduction if you do not itemize your deductions.

    • 2). Report the total amount of your health insurance costs on line 1 of Schedule A. You can only include health insurance costs for which you are not reimbursed.

    • 3). Copy your adjusted gross income from line 38 of your form 1040 tax return onto line 2 of your Schedule A.

    • 4). Multiply your adjusted gross income by 0.075 and report the result on line 3 of Schedule A. For example, if your adjusted gross income equals $39,000, you would multiply $39,000 by 0.075 to get $2,925.

    • 5). Subtract the result from Step 4 from your total deductible health insurance costs to calculate your deduction and report the total on line 4 of Schedule A. In this example, if your total costs equal $4,925, you would subtract $2,925 from $4,925 to find your deduction equals $2,000.

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