How to Claim Health Insurance Premiums on Federal Taxes

You must use form 1040 to claim your medical expenses.

The Internal Revenue Service permits taxpayers to deduct health insurance premiums if they choose to itemize their income tax deductions as part of medical expenses deductions. Deductible health insurance premiums only include those paid for medical insurance. You cannot include life insurance policy costs in the deduction. To claim the deduction, you must file your taxes using form 1040, forgo the standard deduction and use Schedule A to itemize your deductions.

Step 1

Check your financial records to calculate the total you paid in health insurance premiums for the year. You may only include premiums for which you received no reimbursement.

Step 2

Report the total amount paid on line 1 of Schedule A. You can also include any other qualifying medical expenses in the amount.

Step 3

Multiply your adjusted gross income, found on line 38 of your form 1040 tax return, by 0.075 and report the result on line 2 of Schedule A. For example, if your adjusted gross income equals $39,000, you would multiply $39,000 by 0.075 to get $2,925.

Step 4

Subtract the result from step 3 from your deductible medical expenses to compute the amount of money you can deduct for your medical expenses. For example, if you had $6,000 in expenses, you would subtract $2,925 by $6,000 to get $3,075.

Step 5

Report the amount of the deduction on line 4 of schedule A. This amount will be added to your other itemized deductions and used to reduce your taxable income.

Tip

If you are self-employed and had a profit in your business, you may qualify for a self-employed health insurance deduction on line 29 of IRS Form 1040. This deduction will be an adjustment to your gross income and you will not need to itemize your deductions to claim the health insurance premiums.

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