Health Insurance Premium Deductibility?

[SteveNU]

I have a HDHP through my old company with an HSA. My health insurance premiums are paid as a deduction from my pension post tax. Are the premiums deductible if they exceed the 10% AGI limit? Also I would assume any other copays or deductibles that I did not reimburse from the HSA would be deductible too?

2014 was my first full year of retirement so I never had to deal with this before as my health care expenses were never close to meeting the threshold for deductibility. I'm just trying to figure out if I am reading things correctly.

 

[audreyh1]

I have a HDHP through my old company with an HSA. My health insurance premiums are paid as a deduction from my pension post tax. Are the premiums deductible if they exceed the 10% AGI limit? Also I would assume any other copays or deductibles that I did not reimburse from the HSA would be deductible too?

2014 was my first full year of retirement so I never had to deal with this before as my health care expenses were never close to meeting the threshold for deductibility. I'm just trying to figure out if I am reading things correctly.

Yes, I believe health insurance premiums count towards what can be deducted for medical expenses if they exceed 10% of AGI.

This article confirms.7 Rules For Deducting Medical And Dental Expenses - Forbes

 

[athena53]

A little OT, but in doing a first cut of our taxes, I noticed that the portion of DH's SS subject to taxation is net of the premiums deducted from his SS for Medicare B and D. This was his first year on Medicare. A small benefit, but I'll take it. I also realized that I better not include Medicare B and D premiums in the calculation for our Medical Expense deduction.

 

[audreyh1]

A little OT, but in doing a first cut of our taxes, I noticed that the portion of DH's SS subject to taxation is net of the premiums deducted from his SS for Medicare B and D. This was his first year on Medicare. A small benefit, but I'll take it. I also realized that I better not include Medicare B and D premiums in the calculation for our Medical Expense deduction.

Wow, this is good to know. I didn't realize Medicare premiums were considered pre-tax.

How does this affect paying for them out of your HSA then? I had planned on using the HSA for paying Medicare part B and D premiums. They say you can use it for that purpose.

Well, we'll probably start Medicare before we start SS, and thereafter I only expect SS to cover our Medicare premiums, but it's good to know that it lowers your taxable AGI.

 

[MichaelB]

Medicare B and D are deductible expenses and eligible for HSA withdrawal.

 

[audreyh1]

Medicare B and D are deductible expenses and eligible for HSA withdrawal.

Right. It's just that it's interesting that you aren't taxed on the part of your SS income that goes to pay for them either. So they are double tax-free in that case?

 

[MichaelB]

A little OT, but in doing a first cut of our taxes, I noticed that the portion of DH's SS subject to taxation is net of the premiums deducted from his SS for Medicare B and D. This was his first year on Medicare. A small benefit, but I'll take it. I also realized that I better not include Medicare B and D premiums in the calculation for our Medical Expense deduction.

Right. It's just that it's interesting that you aren't taxed on the part of your SS income that goes to pay for them either. So they are double tax-free in that case?

I checked, and it is unfortunately not so. Sorry.

From Form SSA-1099 Box 5, the amount reported and used to determine taxable benefits, is "Box 3 minus box 4", Box 3 is the sum of "Benefits paid by check or deposit plus Medicare Part B premiums deducted from your benefits" and Box 4 is "Benefits repaid".