With healthcare costs rising and tax season always around the corner, one question is on many Americans’ minds: “Is health insurance tax deductible in 2024?” The short answer? Yes — but it depends on your employment status, how you pay premiums, and how you file taxes.
Let’s break it down in this simple, up-to-date guide.
tax deductions for health insurance premiums
Who Can Deduct Health Insurance Premiums in 2024?
Not everyone can claim a deduction for their health insurance premiums. Here’s who may qualify:
1. Self-Employed Individuals
If you’re a freelancer, contractor, or small business owner, the IRS allows you to deduct 100% of your health insurance premiums — including dental and long-term care — for yourself, your spouse, and your dependents.
📝 Key Requirement: Your business must show a net profit, and you can’t be eligible for another subsidized employer plan (like through a spouse).
2. Itemized Deductions for Wage Earners
If you’re not self-employed, you might still deduct premiums under Schedule A (Itemized Deductions) — but there’s a catch:
You can only deduct unreimbursed medical expenses (including health insurance) that exceed 7.5% of your Adjusted Gross Income (AGI).
📌 Example: If your AGI is $60,000, only the portion of your medical expenses above $4,500 can be deducted.
What Types of Health Insurance Are Tax Deductible?
Understanding what qualifies can help you avoid mistakes and save more:
| Deductible | Not Deductible |
|---|---|
| ACA Marketplace Premiums (if self-paid) | Employer-paid group premiums |
| COBRA premiums | Premiums paid with pre-tax dollars |
| Medicare Part B, C, D (if self-paid) | Life insurance or disability insurance |
| Long-term care insurance (with limits) | Supplemental coverage not related to medical care |
What About HSAs and FSAs?
✅ Health Savings Account (HSA)
If you have a High Deductible Health Plan (HDHP), you can contribute to an HSA and deduct contributions on your tax return, even if you don’t itemize.
For 2024, you can contribute up to:
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$4,150 (individual)
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$8,300 (family)
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+$1,000 if age 55 or older
✅ Flexible Spending Accounts (FSA)
FSA contributions come out pre-tax from your paycheck, so while they’re not “deductible” on your return, they already lower your taxable income.
Common Questions About Health Insurance Tax Deductions
❓ Can I deduct my employer-sponsored plan?
Only if you pay with after-tax dollars (rare). Most employer plans use pre-tax dollars, which already reduce your taxable income.
❓ Are Medicare premiums tax deductible?
Yes, if you itemize or are self-employed. Parts B, C, and D all qualify under medical expense deductions.
❓ What if I get a subsidy on the ACA Marketplace?
You can only deduct the portion you actually pay, not the government’s subsidy.
Pro Tax Tip: Use IRS Form 1040 Schedule A or Schedule 1
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W-2 Employee? → Use Schedule A to itemize medical expenses.
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Self-Employed? → Use Schedule 1, Line 17 to claim the self-employed health insurance deduction.
Final Thoughts: What This Means for You
Yes, health insurance can be tax deductible in 2024 — and the savings can be significant. If you’re self-employed, you may write off your entire premium. If you itemize deductions or use HSAs/FSAs, you can reduce your taxable income even more.
🧠 Pro Tip: Always save receipts and premium payment records, especially if you use Marketplace insurance or Medicare.
Take Action: Maximize Your Tax Benefits Today
Before tax season hits, talk to a CPA or tax advisor about your situation. Deducting your health insurance might just be the hidden tax break you’ve been missing.
