It’s a holiday week so as usual I’m re-posting popular stories from the past.
This story is about the deduction available in full on Iowa tax returns for health insurance premiums paid.
One overlooked deduction on Iowa tax returns is the deduction on Line 18 of the Iowa 1040, for health insurance premiums. You can deduct, in full, the amount of health insurance premiums you pay with after-tax money.
Eligible expenses include any medical/vision/dental premiums paid after-tax; Medicare Part B or Part D premiums; and long-term care premiums.
One key is that the premiums must be paid with after-tax money. So if you pay for part of the premium on your employer-provided health insurance premiums, but the premiums are deducted from your pay pre-tax, you DO NOT get a deduction (because your taxable income has already been reduced by the amount of the premiums you paid). Also, any premiums you deduct on Line 18 cannot be included as medical expenses on Schedule A if you itemize deductions on your Iowa return.
This is a great deduction for people who have their own, private insurance policy because you can take it without having to itemize deductions.
“This blog post, along with comments that may follow, should not be considered tax advice. Before you make final tax or financial decisions, please secure a professional tax advisor to give you advice about your unique situation. To secure Jason as your accountant, please click on the ‘Services’ link at the top of the page.”