John M. Hoffman & Associates CPAs

Frequently Asked Tax Questions

Health, Long Term Care and Medicare Insurance Premiums

Health Insurance Premiums are tax deductible in one of three ways:

As a pre-tax wage reduction at your place of employment. 

This is our favorite way of getting health insurance. Most employers pay some portion of the premium as a tax free benefit. Most employers allow the employee to pay their share of the premium as a pretax salary deduction. As we mention throughout, any way to have things paid for with pre-tax income is the most beneficial. This is because everything in the tax code is driven by income – and we mean driven in the wrong direction. So lowering your income right at the top by reducing your wages works wonders.

PLEASE do not confuse us by listing what your pre-tax contribution for health insurance as a deductible medical expense on sheet 14