Like the title says, from the filing process and tax questions to tax policy and reform, you can search and share All Things Tax here. This is the place to find answers to all your general questions that don't fall under the other categories. And just a reminder: questions about software or online filing should be posted in DIY Products.
11-30-2017 09:02 AM
I recently discovered that my employee health insurance premium is taken out post tax and has been since August 2016. Am I able to count this premium under medical expenses? Will this give me any tax relief if I do? If so, am I able amend my 2016 tax return to note the health insurance premium paid in 2016?
11-30-2017 02:15 PM
Welcome to the H&R Block community.
Yes, you can deduct your premiums that were paid with funds that you paid tax on.
Yes, you can amend your 2016 tax return to include the deduction on Schedule A for health insurance premiums in the medical expenses section.
Note that your total medical expense deductions are limited to your total expenses less 10% of your adjusted gross income, so you may or may not have enough to actually get a deduction. Also, if the total of all of your allowable deductions on Schedule A is less than your standard deduction amount then you will be better off going with the standard deduction instead of taking Schedule A deductions.
A high-deductible health plan with a health savings account is an alternative that can provide better tax benefits. Premiums may be less as well since the deductible is higher. You must have a HDHP to open a health savings account. You can deduct after-tax contributions to a health savings account in full directly on your Form 1040. If you are under 30 years of age, a health savings account that offers three primary care visits and preventative care without paying the deductible counts as minimum essential coverage under the Affordable Care Act, meaning no penalties for not having coverage.
If you have any other questions I'll be glad to help.
Senior Tax Advisor (Tampa, FL)