Health and Life Insurance

Category - Tax Issues

It is possible for an individual's health insurance premiums to be counted as a medical expense for the purpose of income tax deduction, as long as the premium amount and other medical expenses exceed ________.
  1. 7.5 percent of the individual's insurance benefits
  2. 7.5 percent of the individual's adjusted gross income
  3. 100 percent of the individual's deductible
  4. Health insurance premiums are never deductible
Explanation
Answer: B - It is possible for an individual's health insurance premiums to be counted as a medical expense for the purpose of income tax deduction, as long as the premium amount and other medical expenses exceed 7.5 percent of the individual's adjusted gross income. An insured may only deduct the amount of medical expenses, inclusive of their health insurance premium amount, that are over this amount. If medical expenses plus the amount of insurance premiums are less than 7.5% of the individual's adjusted gross income, the individual will not be able to deduct any such expenses.
Was this helpful? Upvote!
Login to contribute your own answer or details

Top questions

Related questions

Most popular on PracticeQuiz