Friday, June 10, 2011

What to do with Insurance Premiums?

I was doing a tax problem and I got stuck at this part, I know I can deduct Daniel and Darcy 8600 of medical expenses on Line 1 of schedule A, but I don't understand what to do with the insurance premium "Daniel and Darcy and their children had $3,200 of medical expenses and $5,400 of dental expense that were not covered by insurance (The family's insurance is provided by Darcy's employer as a part of her fringe benefit package. The value of the insurance premiums for 2008 is $14,500)" just stuck with that to do with the 14,500 of insurance premiums, where do they go on the 1040 ?
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Insurance premiums for medical care provided by your employer are not deductible on Schedule A as an itemized deduction. Also you cannot deduct insurance premiums paid with pretax dollars because the premiums are not included in your wages (Box 1 of your W2). Only premiums paid with after tax dollars can be deducted as itemized deductions. Remember that medical expenses must exceed 7.5% of AGI to be included in the Schedule A total. Sue from H&R Block This advice was prepared based on our understanding of the tax law in effect at the time it was written as it applies to the facts that you provided. Click on my profile to read more.
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