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Iowa allows a deduction in full for health insurance premiums paid with after-tax dollars. This sometimes creates questions about what exactly counts as a “health insurance premium.” For example, does dental insurance count?

The short answer is, yes. Health insurance, dental insurance, long-term care insurance, and supplemental insurance such as Medicare Part B and Medicare Part D all count.

For more information, see the expanded instructions to the Iowa 1040, available here.

As a reminder on this deduction, only premiums paid with after-tax dollars count. For example, premiums you pay on a private insurance policy. For people who have insurance through their employer, any premiums paid are almost always paid pre-tax and thus wouldn’t count.

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