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When Can I Deduct Health Insurance Premiums on My Taxes?

When Can I Deduct Health Insurance Premiums on My Taxes?

You can claim health insurance premiums you pay yourself on your federal taxes based on your financial situation and how you obtain health insurance. If you have health insurance through your employer, you cannot claim what you pay toward premiums, as that amount is deducted from your check on a pretax basis.

Generally, you are allowed to deduct health insurance premiums on your taxes if the following apply to you:

  • You itemize your deductions rather than take the standard deduction
  • You pay your health insurance premiums directly, not through your employer
  • Your medical expenses totaled more than 7.5% of your income for the year

The IRS allows you to select a standard deduction or itemize expenses when filing for tax deductions. Your filing option depends on the amount you paid in expenses during the past year, including medical costs.

Is health insurance tax-deductible?

Health insurance premiums are deductible on federal taxes, in some cases, as these monthly payments are classified as medical expenses. Generally, if you pay for medical insurance on your own, you can deduct the amount from your taxes. Your income and how you get your insurance help determine whether the costs are eligible for tax deductions.

Below are some typical sources for health insurance and tax guidance for each item.

Health insurance source
Would health insurance be deductible?
Employer-sponsored plansPremiums for company health insurance are not tax-deductible. Employers deduct premium payments from your paycheck on a pretax basis. Since your employee contributions are already taking advantage of tax savings, you can't deduct them again on your return. Health savings account (HSA) and flexible spending account (FSA) contributions also are paid on a pretax basis and are not tax-deductible.
COBRA insuranceCOBRA insurance is a health plan that allows you to temporarily continue employer-sponsored insurance coverage after you've left the company. Premiums for COBRA insurance are tax-deductible, as you pay them yourself on an after-tax basis.
Marketplace insuranceIf you buy medical coverage through an insurance marketplace, your premiums are deductible as a medical expense. But if you are eligible for a spouse's employer-based health insurance and decline that coverage, you cannot deduct your personal insurance premiums on your return.
MedicarePremiums for Medicare Part B, C or D along with Medigap coverage are tax-deductible. Medicare Part A is not tax-deductible if premiums are paid through Social Security, which is usually the case. If you pay for Part A separately, you can deduct that cost.

Standard vs. itemized deductions

When you're filing your taxes, you have the option to either itemize your deductions, where you catalog every deduction you qualify for (including homeownership and student loan interest, in addition to medical expenses), or take the "standard deduction" — a set dollar amount based on your family status. For the 2021 tax year, the standard deduction for single people or married people filing separately is $12,550. The 2021 deduction for a married couple filing jointly is $25,100, and if you're filing as head of household, your standard deduction is $18,800.

You should always pick the option that reduces your adjusted gross income (AGI) the most, and about 90% of taxpayers choose the standard deduction.

Unless you are self-employed, you can only deduct the cost of health insurance from your income if you itemize your deductions.

For example, if you are single with an AGI of $70,000 and take the standard deduction of $12,550, you're lowering your taxable income to $57,450.

Additionally, in order to deduct medical expenses, including health insurance, from your taxes, your total medical expenses must exceed 7.5% of your AGI — and you can only deduct the amount above that 7.5%. For example, if your AGI is $100,000 and your medical expenses total $9,500, you'd be able to deduct $2,000 of medical expenses.

Using the standard deduction is the right choice for most taxpayers, but itemizing may be better if you had a lot of medical expenses during the year. To help you decide, compare the amount claimed for itemized deductions to the standard deduction and use the option that gives you the larger return.

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How much is the standard deduction?

The amount of money included in the standard deduction depends on the size of your family. For the 2021 tax year, the standard deduction amounts are:

Filing status
Standard deduction amount
Single and married filing separately$12,550
Head of household$18,800
Married filing jointly$25,100
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Self-employed health insurance deduction

If you are self-employed and have a net profit for the year, you can claim medical insurance premiums you pay for yourself, your spouse and your dependents. This is a standard deduction for medical insurance that is used to reduce your AGI — it's not an overall cost itemization.

Do I take the standard deduction or itemize my expenses?

Whether you take the standard deduction or itemize depends on your financial situation. Choosing one or the other is not permanent — you can change every year when you file your taxes. To determine what would work best for you, we suggest looking at the Schedule A (Form 1040). Add up all eligible itemized expenses, including medical, and compare that number with the standard deduction that would apply to you. If your itemized expenses total more than your standard deduction amount, you would save money by taking the time to itemize. You can also use this IRS tool to help you determine what medical expenses are deductible.

What if I qualify for federal premium subsidies?

You may qualify for an income-based premium subsidy, also called an advance premium tax credit (APTC), for coverage you bought through the Health Insurance Marketplace. Any premium you pay that's reimbursed by an APTC can't be deducted from your taxes. But any remaining premium can be deducted.

For example, say your APTC is $300 and your tax return shows you can deduct $500 in premiums. In that case, you could claim the additional $200 on your return. If your eligible tax deduction is lower than your APTC amount, the difference is subtracted from your refund or added to your balance due.

Other medical expenses that are tax-deductible

The IRS lets you deduct medical expenses that were ordered by a doctor or health care professional. For a complete list of acceptable medical expenses, you can visit the IRS.gov website. For the 2021 tax year, you can deduct the cost of personal protective equipment, such as masks, hand sanitizer and sanitizing wipes for the primary purpose of preventing the spread of the coronavirus.

Other eligible medical expenses include:

  • Bandages
  • Chiropractic care
  • Crutches
  • Dental treatment
  • Eye exams, eyeglasses and contact lenses
  • Guide dog or other service animal
  • Hearing aids
  • Nursing services
  • Prescription medications
  • Therapy
  • Wheelchairs

Along with these direct medical expenses, you can deduct travel costs related to medical care. For example, for a drive to a physical therapy appointment, you could deduct the cost of gas and oil as a medical expense.

What medical expenses are not tax-deductible?

Any medical expenses that you are otherwise reimbursed for cannot be deducted. This includes premium tax credits since these credits already reduce the amount you pay toward health insurance.

Other nondeductible expenses include cosmetic expenses or procedures unrelated to your health, nonprescription drugs and general health purchases like toothpaste, vitamins or diet foods.

Expert insights to help you make smarter financial decisions

ValuePenguin has curated an exclusive panel of professionals, spanning various areas of expertise, to help dissect difficult subjects and empower you to make smarter financial decisions.

  1. In your opinion, which has more perceived value: a partial reimbursement after making a large payment or paying the correct amount upon time of service? Why?
  2. At what point does itemizing tax deductions become more worthwhile than taking the standard deduction? What tips do you have to make itemizing deductions less intimidating?
  3. Therapy and travel costs associated with medical care are examples of purchases that are eligible for tax deductions. What advice would you give for consumers to better track tax-deductible purchases throughout the year?
  4. What major life event(s) should warrant Americans using a tax professional as opposed to a DIY tax preparation service?
  5. What is one piece of advice that Americans should take regarding yearly financial and tax planning when it comes to health care?

  • Samuel Handwerger
  • CPA and Accounting Lecturer at the Robert H. Smith School of Business
  • Read answer
  • Jay Soled
  • Professor and Director of Master of Accountancy in Taxation
  • Read answer
  • David Rosenbloom
  • James S. Eustice Visiting Professor of Taxation
  • Read answer

The commentary provided by these industry experts represents their viewpoints and opinions alone. Responses were accurate at the time of publication but for specific instruction about your situation, contact an accountant.

Samuel Handwerger

CPA and Accounting Lecturer at the Robert H. Smith School of Business, University of Maryland

In your opinion, which has more perceived value: a partial reimbursement after making a large payment or paying the correct amount upon time of service? Why?

Another way of asking this question is: When do you see a CPA sweat bullets? Answer: When they have to tell a client they owe taxes as opposed to getting a refund.

In my career as a CPA, I have tried many times to explain to clients the concept that overpaying your taxes during the year through withholding taxes or estimated tax payments is not a smart idea economically. After all, and we have all heard this, it is giving the government an interest-free loan. Yet roughly 80% of all tax returns filed every year in the USA are requests for refunds. Even if you argue that the overpayments are due to errors in withholding directions given by employees to their employers, with a couple of extra seconds of effort this could be rectified. Clearly, Americans would rather see a refund rather than having to write a check.

Behavioral economic practitioners will explain this phenomenon as a clear illustration of prospect theory. Humans, by and large, are loss averse when compared to "winning" by a factor of about two to three. To have to owe taxes, even if fairly insignificant, feels multiple times more hurtful when compared to even a small refund.

Refunds are perceived as "winning" at the tax game. To the average taxpayer, the refund says: "See, I won the tax game. I don’t owe as much as the government thinks!" CPAs also get caught up with this "winning" oriented attitude when they proudly tell the client that they are due a refund, as if the CPA’s prowess at preparing returns is the only reason.

However, prospect theory has shown that it is not difficult to educate people to undo the normal tendency to shun losses, i.e., not getting a refund, so vociferously. If that is true, why have I had such a hard time doing similarly with my clients with regards to owing taxes?

Here I believe we have the added hurdle of overcoming not just the "winning" or "losing" money perception, but the perceived foe — in this case, the government. Seems like no one is impervious when it comes to paying the government. Withholding taxes doesn't feel as if one is "paying" the government, as it is money not even seen. It’s deducted before it goes to your pocket, so it doesn't even seem like it belonged to you to begin with. Paying at tax time from the money that you did put in your pocket, that’s a different story.

Withholding taxes first started as a temporary measure during World War II in order to help the government pay for the costly effort. It came with a highly patriotic pitch and was easily endorsed by Americans. Check out Gene Autry’s song "I Paid My Income Tax Today." The government recognized that what was good for the goose was also good for the gander, and withholding taxes easily became permanent. Prospect theory was understood, at least intuitively, even then.

At what point does itemizing tax deductions become more worthwhile than taking the standard deduction? What tips do you have to make itemizing deductions less intimidating?

This is simple mathematics. If your itemized deductions are greater than your standard deduction, you itemize since your taxable income will be lower, and hence, lower taxes. For example, in 2021 the standard deduction for joint tax return filers will be $25,100. How many people will have itemized deductions higher than that amount? Well, not too many. In 2018 only a little more than 10% of all tax returns filed were taking the itemized deduction. This was down from 30% in 2017, reflecting the outgrowth of the Tax Cuts and Jobs Act, which significantly raised the standard deduction.

So, you could simply bet with the odds and take the standard deduction without thinking about it, or you could do a little math exercise, particularly wise to do if you own a home with a mortgage.

Here’s what to do. Take your mortgage interest paid for the year, add your charitable contributions, and then add on $10,000, the highest amount allowed for the state income and real estate tax deduction. If that amount is getting you close to the standard deduction — then it pays to go through the motions of completing Schedule A to see if indeed your itemized deductions will dwarf the standard deduction and help you lower your taxes.

As far as fighting the intimidation of going through the motions of itemizing, you can mentally calculate that for every dollar above the standard deduction your itemized deductions take you, you will save around 20 cents for each of those dollars, as based on the national average effective rate in 2019.

Therapy and travel costs associated with medical care are examples of purchases that are eligible for tax deductions. What advice would you give for consumers to better track tax-deductible purchases throughout the year?

Medical expenses are another category of itemized deductions, but they are not for everybody. No, I am not tax profiling; I am simply alerting you to the fact that the medical expense deduction is limited to only the amount of your out-of-pocket medical costs that exceeds 7.5% of your adjusted gross income. To see the benefit of this deduction, you will need to have either some relatively high medical expenses (not covered by insurance) or lower income to overcome the limitation hurdle.

To keep track of these is not an easy task, as you will have to resort to some degree of recordkeeping. I use one credit card specifically for costs that I think are deductible so that at the end of the year I can classify these by category. For example, I use this card only for charitable contributions, medical costs and fancy luxury items that I know are not deductible but where the dollars squandered feel better when charged to the credit card reserved for tax deductions. You can also download a medical deduction spreadsheet for free from squawkfox.com.

To keep track of the medical travel miles and costs, you can try TripLog, which is reasonably priced and is great for self-employed individuals. Just keep in mind that the deduction per mile for medical travel is 16 cents per mile. It is much better for entrepreneurs at 57.5 cents per mile.

What major life event(s) should warrant Americans using a tax professional as opposed to a DIY tax preparation service?

There are at least two major life events where the letters CPA become very valuable for the purpose of tax preparation: your first home purchase and the first child, whichever comes first. However, don’t expect the CPA’s tax software to outdo whatever your DIY online favorite can do.

Nope, the CPA’s value here at these milestones is long-term tax and financial planning advisory. You will want to hear what the CPA has to say about retirement planning, insurance and estate strategies, amongst others. The CPA is your best quarterback for these very important areas of your financial life.

Of course, opening your own business and entering a stock option plan at work are also immediate invitations to seek a CPA. Both are highly tax-complex transactions and should only be started with the advice of a CPA.

What is one piece of advice that Americans should take regarding yearly financial and tax planning when it comes to health care?

Wow, a loaded question. Trying to pin it down to just one piece of advice seemed daunting at first. But after a little reflection, it was easy — "buy" the risk.

That means buy insurance to have someone else bear the burden of the cost of the "what-if". Buy health insurance, both regular and long-term care, for "what if" you get ill or need long-term rehabilitation.

Buy disability insurance. Your odds of something interfering with your income-producing years are greater than a premature permanent trip to heaven.

Buy catastrophic coverage. I have seen too many families literally torn apart financially speaking when disaster strikes, and the financial burden falls on extended family members. Many of these policies can be had through employment, often in tax-favorable ways, so check with your HR department at work.

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If that is true, why have I had such a hard time doing similarly with my clients with regards to owing taxes?\u003C\/p\u003E\n\n\u003Cp\u003EHere I believe we have the added hurdle of overcoming not just the \"winning\" or \"losing\" money perception, but the perceived foe \u2014 in this case, the government. Seems like no one is impervious when it comes to paying the government. Withholding taxes doesn't feel as if one is \"paying\" the government, as it is money not even seen. It\u2019s deducted before it goes to your pocket, so it doesn't even seem like it belonged to you to begin with. Paying at tax time from the money that you did put in your pocket, that\u2019s a different story.\u003C\/p\u003E\n\n\u003Cp\u003EWithholding taxes first started as a temporary measure during World War II in order to help the government pay for the costly effort. It came with a highly patriotic pitch and was easily endorsed by Americans. Check out Gene Autry\u2019s song \"I Paid My Income Tax Today.\" The government recognized that what was good for the goose was also good for the gander, and withholding taxes easily became permanent. Prospect theory was understood, at least intuitively, even then.\u003C\/p\u003E\n\n\u003Ch4\u003EAt what point does itemizing tax deductions become more worthwhile than taking the standard deduction? What tips do you have to make itemizing deductions less intimidating?\u003C\/h4\u003E\n\n\u003Cp\u003EThis is simple mathematics. If your itemized deductions are greater than your standard deduction, you itemize since your taxable income will be lower, and hence, lower taxes. \nFor example, in 2021 the standard deduction for joint tax return filers will be $25,100. How many people will have itemized deductions higher than that amount? Well, not too many. In 2018 only a little more than 10% of all tax returns filed were taking the itemized deduction. This was down from 30% in 2017, reflecting the outgrowth of the Tax Cuts and Jobs Act, which significantly raised the standard deduction.\u003C\/p\u003E\n\n\u003Cp\u003ESo, you could simply bet with the odds and take the standard deduction without thinking about it, or you could do a little math exercise, particularly wise to do if you own a home with a mortgage.\u003C\/p\u003E\n\n\u003Cp\u003EHere\u2019s what to do. Take your mortgage interest paid for the year, add your charitable contributions, and then add on $10,000, the highest amount allowed for the state income and real estate tax deduction. If that amount is getting you close to the standard deduction \u2014 then it pays to go through the motions of completing Schedule A to see if indeed your itemized deductions will dwarf the standard deduction and help you lower your taxes.\u003C\/p\u003E\n\n\u003Cp\u003EAs far as fighting the intimidation of going through the motions of itemizing, you can mentally calculate that for every dollar above the standard deduction your itemized deductions take you, you will save around 20 cents for each of those dollars, as based on the national average effective rate in 2019.\u003C\/p\u003E\n\n\u003Ch4\u003ETherapy and travel costs associated with medical care are examples of purchases that are eligible for tax deductions. What advice would you give for consumers to better track tax-deductible purchases throughout the year?\u003C\/h4\u003E\n\n\u003Cp\u003EMedical expenses are another category of itemized deductions, but they are not for everybody. No, I am not tax profiling; I am simply alerting you to the fact that the medical expense deduction is limited to only the amount of your out-of-pocket medical costs that exceeds 7.5% of your adjusted gross income. To see the benefit of this deduction, you will need to have either some relatively high medical expenses (not covered by insurance) or lower income to overcome the limitation hurdle.\u003C\/p\u003E\n\n\u003Cp\u003ETo keep track of these is not an easy task, as you will have to resort to some degree of recordkeeping. I use one credit card specifically for costs that I think are deductible so that at the end of the year I can classify these by category. For example, I use this card only for charitable contributions, medical costs and fancy luxury items that I know are not deductible but where the dollars squandered feel better when charged to the credit card reserved for tax deductions. You can also download a medical deduction spreadsheet for free from \u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" rel=\"nofollow noopener\" target=\"_blank\" title=\"Squawkfox\" href=\"https:\/\/www.squawkfox.com\/\"\u003Esquawkfox.com\u003C\/a\u003E\u003C\/span\u003E.\u003C\/p\u003E\n\n\u003Cp\u003ETo keep track of the medical travel miles and costs, you can try TripLog, which is reasonably priced and is great for self-employed individuals. Just keep in mind that the deduction per mile for medical travel is 16 cents per mile. It is much better for entrepreneurs at 57.5 cents per mile.\u003C\/p\u003E\n\n\u003Ch4\u003EWhat major life event(s) should warrant Americans using a tax professional as opposed to a DIY tax preparation service?\u003C\/h4\u003E\n\n\u003Cp\u003EThere are at least two major life events where the letters CPA become very valuable for the purpose of tax preparation: your first home purchase and the first child, whichever comes first. However, don\u2019t expect the CPA\u2019s tax software to outdo whatever your DIY online favorite can do.\u003C\/p\u003E\n\n\u003Cp\u003ENope, the CPA\u2019s value here at these milestones is long-term tax and financial planning advisory. You will want to hear what the CPA has to say about retirement planning, insurance and estate strategies, amongst others. The CPA is your best quarterback for these very important areas of your financial life.\u003C\/p\u003E\n\n\u003Cp\u003EOf course, opening your own business and entering a stock option plan at work are also immediate invitations to seek a CPA. Both are highly tax-complex transactions and should only be started with the advice of a CPA.\u003C\/p\u003E\n\n\u003Ch4\u003EWhat is \u003Cem\u003Eone\u003C\/em\u003E piece of advice that Americans should take regarding yearly financial and tax planning when it comes to health care?\u003C\/h4\u003E\n\n\u003Cp\u003EWow, a loaded question. Trying to pin it down to just one piece of advice seemed daunting at first. But after a little reflection, it was easy \u2014 \"buy\" the risk.\u003C\/p\u003E\n\n\u003Cp\u003EThat means buy insurance to have someone else bear the burden of the cost of the \"what-if\". Buy health insurance, both regular and long-term care, for \"what if\" you get ill or need long-term rehabilitation.\u003C\/p\u003E\n\n\u003Cp\u003EBuy disability insurance. Your odds of something interfering with your income-producing years are greater than a premature permanent trip to heaven.\u003C\/p\u003E\n\n\u003Cp\u003EBuy catastrophic coverage. I have seen too many families literally torn apart financially speaking when disaster strikes, and the financial burden falls on extended family members. Many of these policies can be had through employment, often in tax-favorable ways, so check with your HR department at work.\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"ShortcodeAlign--root ShortcodeAlign--horizontal-center\"\u003E\n \u003Cdiv class=\"ShortcodeAlign--container\"\u003E \n \u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root Button--root Button--primary Button--auto-width\" title=\"Back to all experts\" href=\"#expertadvice\"\u003EBack to all experts\u003C\/a\u003E\u003C\/span\u003E\n \u003C\/div\u003E\n\u003C\/div\u003E\n\u003C\/p\u003E\n\n\u003Cp\u003E\n \u003C\/div\u003E\n \u003C\/div\u003E\n\u003C\/div\u003E\n\n","padding":"double"}

Jay Soled

Professor and Director of Master of Accountancy in Taxation, Rutgers University

In your opinion, which has more perceived value: a partial reimbursement after making a large payment or paying the correct amount upon time of service? Why?

Ideally, a taxpayer should owe money on April 15. Why? If the taxpayer anticipates a refund, the taxpayer has essentially given a tax-free loan to the government.

At what point does itemizing tax deductions become more worthwhile than taking the standard deduction? What tips do you have to make itemizing deductions less intimidating?

Opting to itemize only makes sense if doing so yields tax savings. By utilizing prepackaged software, securing such deductions is a breeze.

Therapy and travel costs associated with medical care are examples of purchases that are eligible for tax deductions. What advice would you give for consumers to better track tax-deductible purchases throughout the year?

There are many self-help books and articles that provide checklists of deductible expenses. Capitalize upon these resources and keep excellent records. You will be richly rewarded.

What major life event(s) should warrant Americans using a tax professional as opposed to a DIY tax preparation service?

Taxpayers who endure a divorce or death of a loved one should consider retaining the advice of a tax professional.

What is one piece of advice that Americans should take regarding yearly financial and tax planning when it comes to health care?

In general, due to limitations in the code, such expenses will not be deductible on one's tax return (i.e., few taxpayers are eligible for taking these deductions due to the incomes they earn). That being the case, taxpayers should be aware that they will generally bear the full onus of these bills.

{"backgroundColor":"ice","content":"\u003C\/p\u003E\n\n\u003Ch3 id=\"expert-jay-soled\"\u003EJay Soled\u003C\/h3\u003E\n\n\u003Cp\u003EProfessor and Director of Master of Accountancy in Taxation, Rutgers University\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"ShortcodeToggle--root ShortcodeToggle--article \" id=\u003E\n \u003Cbutton class=\"ShortcodeToggle--toggle\" onclick=\"this.parentNode.classList.toggle('ShortcodeToggle--open');\"\u003E\u003Cp class=\"ShortcodeToggle--label\"\u003ESee their advice\u003C\/p\u003E\u003C\/button\u003E\n \u003Cdiv class=\"ShortcodeToggle--contents-wrapper\"\u003E\n \u003Cdiv class=\"ShortcodeToggle--contents\"\u003E\n \u003C\/p\u003E\n\n\u003Ch4\u003EIn your opinion, which has more perceived value: a partial reimbursement after making a large payment or paying the correct amount upon time of service? Why?\u003C\/h4\u003E\n\n\u003Cp\u003EIdeally, a taxpayer should owe money on April 15. Why? If the taxpayer anticipates a refund, the taxpayer has essentially given a tax-free loan to the government.\u003C\/p\u003E\n\n\u003Ch4\u003EAt what point does itemizing tax deductions become more worthwhile than taking the standard deduction? What tips do you have to make itemizing deductions less intimidating?\u003C\/h4\u003E\n\n\u003Cp\u003EOpting to itemize only makes sense if doing so yields tax savings. By utilizing prepackaged software, securing such deductions is a breeze.\u003C\/p\u003E\n\n\u003Ch4\u003ETherapy and travel costs associated with medical care are examples of purchases that are eligible for tax deductions. What advice would you give for consumers to better track tax-deductible purchases throughout the year?\u003C\/h4\u003E\n\n\u003Cp\u003EThere are many self-help books and articles that provide checklists of deductible expenses. Capitalize upon these resources and keep excellent records. You will be richly rewarded.\u003C\/p\u003E\n\n\u003Ch4\u003EWhat major life event(s) should warrant Americans using a tax professional as opposed to a DIY tax preparation service?\u003C\/h4\u003E\n\n\u003Cp\u003ETaxpayers who endure a divorce or death of a loved one should consider retaining the advice of a tax professional.\u003C\/p\u003E\n\n\u003Ch4\u003EWhat is \u003Cem\u003Eone\u003C\/em\u003E piece of advice that Americans should take regarding yearly financial and tax planning when it comes to health care?\u003C\/h4\u003E\n\n\u003Cp\u003EIn general, due to limitations in the code, such expenses will not be deductible on one's tax return (i.e., few taxpayers are eligible for taking these deductions due to the incomes they earn). That being the case, taxpayers should be aware that they will generally bear the full onus of these bills.\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"ShortcodeAlign--root ShortcodeAlign--horizontal-center\"\u003E\n \u003Cdiv class=\"ShortcodeAlign--container\"\u003E \n \u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root Button--root Button--primary Button--auto-width\" title=\"Back to all experts\" href=\"#expertadvice\"\u003EBack to all experts\u003C\/a\u003E\u003C\/span\u003E\n \u003C\/div\u003E\n\u003C\/div\u003E\n\u003C\/p\u003E\n\n\u003Cp\u003E\n \u003C\/div\u003E\n \u003C\/div\u003E\n\u003C\/div\u003E\n\n","padding":"double"}

David Rosenbloom

James S. Eustice Visiting Professor of Taxation, Director, International Tax Program, New York University

What is one piece of advice that Americans should take regarding yearly financial and tax planning when it comes to health care?

The services of a tax professional are advisable for estate planning and for any extraordinary transactions that a taxpayer may encounter. Those services are of an entirely different character than what you find with a DIY tax program. I would use such a program only for routine form preparation and the like.

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Methodology and sources

Insurance-specific data and definitions were gathered from CMS.gov, while all tax-related data and definitions were sourced from IRS.gov. We obtained expert commentary directly from the respective industry experts.

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.