Health insurance on your IRS tax return: how to deduct healthcare expenses
Did you know that you can deduct health insurance premiums from your income tax in the health category?
Healthcare expenses, including insurance premiums, can contribute to increasing your income tax refund or reducing the tax you owe. But first, you need to ensure that all your expenses are properly accounted for. Find out how to benefit from the health insurance premium deduction on your income tax return.
What you need to do on your tax return
When filing your IRS tax return, the Tax Authority pre-fills the information on expenses based on the information from e-fatura or the Finance Portal. If any of these expenses are not available on the Finance Portal, you can change the amounts considered by the Tax Authority by filling in Annex H of the IRS.
To include health insurance expenses in Annex H of the IRS, the following steps are required in the order presented:
- Add Annex H to your IRS tax return if it is not pre-filled;
- Check "Yes" in field 01 of table 6C1, to be able to change or add expenses that have already been pre-filled;
- Authenticate all members of the household;
- Fill in table 6C1, using one line per expenditure code and per holder;
- Change or add values, entering all expenses incurred by each member of the household, including those whose values are equal to those reported by the AT.
How much can I deduct from my health insurance premium on my IRS tax return?
Yes, health insurance premiums are tax deductible. According to Article 78-C of the IRS Code, it is possible to deduct 15% of certain expenses for all members of the household, up to a limit of €1,000 per household. Married taxpayers who choose to file separate IRS returns can deduct €500 for each member of the couple.
Expenses included in this category include health insurance premiums that exclusively cover health risks.
Can I deduct expenses not covered by health insurance?
In addition to the health insurance premium, the amount relating to expenses not covered by insurance.
So, when will I know how much I can deduct for health insurance?
Since March 15 , you can check all the expenses you will deduct from your IRS, such as health insurance, in your personal area of the Finance Portal. At this point, you can, and should, confirm that the insurance premium has been included in your deductions.
How to declare health insurance on your IRS tax return?
As a rule, when you file your IRS tax return, this information is pre-filled by the AT based on information from e-fatura or the Finance Portal. However, if any of these expenses do not appear on the Finance Portal, you can change the amounts considered by the AT. To do so, you will need to fill in Annex H of the IRS.