What You Need to Know About Health Insurance Deductions

With the Affordable Care Act now in full effect, your 2014 taxes will allow you to have some new health insurance deductions. Therefore, today we are conferring on this topic a little bit so you can know what to expect.

When Health Insurance is Not Tax Deductible

If you did not pay for your health insurance, you are not able to take the tax deduction for it. This includes those who have health insurance through their employers. However, if you pay half of the money due for your health insurance you are able to take a deduction for the amount that you are responsible for. Additionally, if you receive a premium tax credit to purchase health insurance through the Marketplace you are not able to claim your premiums either. The bottom line is you can only deduct what you pay with your own money for your health insurance.

When Health Insurance is Tax Deductible

Generally, those who are self-employed have health insurance that is tax deductible unless they have insurance through their spouse’s job. Additionally, when claiming the health insurance deduction you cannot write off more than your income.

Closing Thoughts

Huddleston Tax CPAs can help you with health insurance deductions. This year taxes are going to be a little trickier since the Affordable Care Act is now in full effect. If you have any questions about health insurance deductions, it is advised that you speak to a tax consultant to have all of your questions answered, especially if you are someone who files your own taxes. We have CPAs in Bellevue! We are a Redmond CPA firm, too!