AFLAC Insurance Policies
Unlike health or life insurance, AFLAC insurance is supplemental insurance that provides direct financial assistance for policyholders who are sick or injured. An insured person can use these financial payments to cover the cost of any living expenses she incurs while unable to work due to illness or injury.
Supplemental Insurance Premiums
Taxpayers cannot deduct the cost of supplemental insurance policies, such as those provided by AFLAC, on their tax returns. According to the IRS, the cost of an insurance policy that pays a specified amount to insured parties who are sick or hurt is not a deductible medical expense.
Medical and Dental Expenses
The IRS does allow taxpayers to claim many medical and dental expenses as itemized deductions on IRS Schedule A. Eligible deductions include physicians’ fees, hospital expenses, prescription drug payments and certain health insurance premiums.
Reporting Qualified Deductions
Those who accrue qualified medical expenses, such as out-of-pocket health insurance premiums, during the tax year can deduct these costs only if they itemize their deductions. These taxpayers must file using IRS Form 1040 and complete Schedule A “Itemized Deductions” to report these expenses. Taxpayers can only claim the amount of their medical and dental expenses that exceeds 10 percent of their adjusted gross income.