Are my COBRA premiums tax deductible?

Premiums for COBRA insurance are tax deductible, as they are paid entirely by you on an after-tax basis. If you buy medical coverage through an insurance marketplace, then premiums would be tax deductible as a medical expense.

How much of COBRA is tax deductible?

7.5%
Are my COBRA premiums deductible? Yes they are tax deductible as a medical expense. You can only deduct the amount of COBRA medical expenses on your federal income tax in excess of 7.5% of your Adjusted Gross Income and then only if you itemize deductions.

Can you deduct Cobra premiums on your taxes?

However, the premiums from your COBRA policies will be deductible as an itemized medical expense deduction See the following from IRS Publication 535: You may be able to deduct the amount you paid for medical and dental insurance and qualified long-term care insurance for yourself, your spouse, and your dependents.

Can you turn in Cobra payments for your insurance on your?

If you’re paying out of pocket, you might be able to translate those COBRA premiums into a tax deduction as part of the medical expenses deduction. Health insurance premiums that you pay out-of-pocket count as a deductible medical expense. COBRA premiums count as a deductible health insurance premium as long as you’re paying the premiums yourself.

How to claim the COBRA continuation tax credit?

IR-2009-15, IRS Releases Information to Help Employers Claim COBRA Medical Coverage Credit on Payroll Tax Form. Questions and answers on how to administer the COBRA continuation premium subsidy to former employees. Notice 2009-27 PDF, Premium Assistance for COBRA Benefits.

Where does cobra go on a 1040 tax return?

See line 3 of Schedule SE. You report your net earnings from self employment less line 29 from 1040. COBRA premiums are not deductible on 1040 line 29; to qualify, the IRS says the insurance plan must be in your name (COBRA is in your former employer’s name). H&R Block confirms this.