|
tax question: Are premiums for a HDHP deductible?
02-07-2010, 01:50 PM
|
#1
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2008
Posts: 13,130
|
tax question: Are premiums for a HDHP deductible?
Is the premium for a high deductible health plan (HDHP) deductible? From what I read:
Insurance Premiums
You can include in medical expenses insurance premiums you pay for policies that cover medical care. Medical care policies can provide payment for treatment that includes: - Hospitalization, surgical services, X-rays,
- Prescription drugs and insulin,
- Dental care,
- Replacement of lost or damaged contact lenses, and
- Long-term care (subject to additional limitations). See Qualified Long-Term Care Insurance Contracts under Long-Term Care, later
------
I know the medical expenses must satisfy the 7.5% of Gross Income threshold. But is the deductibility of HDHP/HSA premiums excluded?
Full IRS pub:
Publication 502 (2009), Medical and Dental Expenses
|
|
|
|
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!
Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!
You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!
|
02-07-2010, 02:17 PM
|
#2
|
Thinks s/he gets paid by the post
Join Date: Aug 2006
Posts: 2,433
|
So long as you pay them yourself with taxable $, they are deductible subject to the 7.5% threshold on Schedule A.
__________________
I'd rather be governed by the first one hundred names in the telephone book than the Harvard faculty - William F. Buckley
|
|
|
02-07-2010, 03:28 PM
|
#3
|
Full time employment: Posting here.
Join Date: Nov 2009
Location: VA
Posts: 923
|
Are you self-employed?
|
|
|
02-07-2010, 03:38 PM
|
#4
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2008
Posts: 13,130
|
Not self-employed. Fully retired
|
|
|
02-07-2010, 07:34 PM
|
#5
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2008
Posts: 13,130
|
Quote:
Originally Posted by FIRE'd@51
So long as you pay them yourself with taxable $, they are deductible subject to the 7.5% threshold on Schedule A.
|
Thx. I wasn't sure if HSA's were treated any differently.
|
|
|
02-07-2010, 08:04 PM
|
#6
|
Moderator Emeritus
Join Date: Feb 2004
Location: minnesota
Posts: 13,228
|
Yup, premiums for health insurance, whether or not an HSA plan, are deductible as described in pub 502. The senate version of the health care bill that has not passed was going to raise the threshold from 7.5% to 10%. ( political interjection: this was a very bad idea as already there is a huge disparity with employment related insurance tax benefits).
__________________
.
No more lawyer stuff, no more political stuff, so no more CYA
|
|
|
02-08-2010, 03:46 AM
|
#7
|
Thinks s/he gets paid by the post
Join Date: Oct 2002
Location: Chattanooga
Posts: 3,877
|
Pay the premiums out of the HSA account to get the tax benefit as most people don't come close to hitting the 7.5% AGI threshold. Just my two cents.
__________________
Earning money is an action, saving money is a behavior, growing money takes a well diversified portfolio and the discipline to ignore market swings.
|
|
|
02-08-2010, 07:47 AM
|
#8
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Oct 2005
Location: North Oregon Coast
Posts: 16,483
|
Quote:
Originally Posted by frayne
Pay the premiums out of the HSA account to get the tax benefit as most people don't come close to hitting the 7.5% AGI threshold. Just my two cents.
|
My understanding is that you can not pay health insurance premiums from an HSA unless you are on COBRA or collecting unemployment benefits.
If you can't pay premiums through an HSA or an employer's cafeteria plan, premiums are indeed subject to the 7.5% AGI threshold on Schedule A.
__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)
|
|
|
02-08-2010, 08:41 AM
|
#9
|
Full time employment: Posting here.
Join Date: Nov 2009
Location: VA
Posts: 923
|
Quote:
Originally Posted by ziggy29
My understanding is that you can not pay health insurance premiums from an HSA unless you are on COBRA or collecting unemployment benefits.
If you can't pay premiums through an HSA or an employer's cafeteria plan, premiums are indeed subject to the 7.5% AGI threshold on Schedule A.
|
You are correct, only COBRA premiums or on unemployment can use HSA money to pay premiums. The 7.5% threshhold is also correct for now unless you are self-employed.
|
|
|
|
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
|
|
Thread Tools |
|
Display Modes |
Linear Mode
|
Posting Rules
|
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
HTML code is Off
|
|
|
|
» Recent Threads
|
|
|
|
|
|
|
|
|
|
|
|
|
» Quick Links
|
|
|