What insurance premiums are deductible?

Asked by: Lenny Koepp PhD  |  Last update: August 27, 2025
Score: 4.4/5 (31 votes)

If you are self-employed, you may be eligible to deduct premiums that you pay for medical, dental and qualifying long-term care insurance coverage for yourself, your spouse and your dependents.

Are any insurance premiums deductible?

You can include health insurance premiums in your medical expense calculations. However, certain premiums are not eligible for medical expense deductions. You cannot include the following premiums in your tax deductions: Life insurance policies.

Are medicare and insurance premiums tax deductible?

Yes, Medicare premiums are tax deductible as a medical expense as long as you meet two requirements. First, you must itemize your deductions on your tax return to deduct them from your taxable income. Second, only medical expenses that exceed 7.5% of your adjusted gross income (AGI) are deductible.

Are house insurance premiums tax deductible?

You may look for ways to reduce costs including turning to your tax return. Some taxpayers have asked if homeowner's insurance is tax deductible. Here's the skinny: You can only deduct homeowner's insurance premiums paid on rental properties. Homeowner's insurance is never tax deductible your main home.

Are car insurance premiums deductible?

If you use your car strictly for personal use, you likely cannot deduct your car insurance costs on your tax return. Unless you use your car for business-related purposes, you are likely ineligible to claim your auto insurance premium on your tax return.

How insurance premiums and deductibles work

36 related questions found

Are insurance premiums deductibles?

No, your premium does not go towards your deductible, and it doesn't count for your out-of-pocket maximum (the most you'll pay for care each year). But deductibles and premiums flow into one another. They have an inverse relationship. When one is more affordable, the other tends to be more expensive.

What deductions can I claim?

You can deduct these expenses whether you take the standard deduction or itemize:
  • Alimony payments.
  • Business use of your car.
  • Business use of your home.
  • Money you put in an IRA.
  • Money you put in health savings accounts.
  • Penalties on early withdrawals from savings.
  • Student loan interest.
  • Teacher expenses.

Are utilities tax deductible?

You can deduct a portion of your home-related expenses, including utilities, if you use your home office exclusively for self-employment or business use. This is true whether you're a homeowner or a renter. However, you cannot deduct these expenses if you are an employee who works from home.

Are mortgage insurance premiums no longer deductible?

Key takeaways. The mortgage insurance (PMI) deduction expired after the 2021 tax year. For eligible years, PMI was deductible only if you itemized your tax deductions. Most borrowers pay mortgage insurance premiums when putting down less than 20% on a home.

Can I deduct renters insurance on my taxes?

In most cases, the deductibles for renters insurance are not tax-deductible. Insurance premiums for personal use, such as renters insurance, generally cannot be deducted from your income tax return.

Can I deduct health insurance premiums if I am retired?

Health insurance premiums can be tax deductible when you retire, but it depends on several factors such as your age, the type of health insurance plan that you have and whether you are self-employed or not.

What is the extra standard deduction for seniors over 65?

For 2024, the additional standard deduction amounts for taxpayers who are 65 and older or blind are: $1,950 for Single or Head of Household (increase of $100) $1,550 for married taxpayers or Qualifying Surviving Spouse (increase of $50)

Are Social Security taxes deductible?

You can deduct half of your Social Security tax on IRS Form 1040. The deduction must be taken from your gross income when determining your adjusted gross income. It cannot be an itemized deduction and must not be listed on your Schedule C.

Are prescriptions tax deductible?

Unreimbursed payments for prescription medications and appliances such as glasses, contacts, false teeth and hearing aids are also deductible. The IRS also lets you deduct the expenses that you pay to travel for medical care, such as mileage on your car, bus fare and parking fees.

Do insurance premiums reduce taxable income?

Tax savings on insurance premiums (TIP)

If you enroll in a medical plan that requires you to pay a premium, you'll be automatically enrolled for pretax deduction of your premium costs from your paycheck. This reduces your taxable income and increases your take-home pay.

Is self-employment tax deductible?

Reporting self-employment tax

When figuring your adjusted gross income on Form 1040, Form 1040-SR, or Form 1040-NR, you can deduct one-half of the self-employment tax. You calculate this deduction on Schedule SE (attach Schedule 1 (Form 1040), Additional Income and Adjustments to Income PDF).

What insurance premiums are not deductible?

Business Insurance Premiums That Are Not Tax Deductible

Certain life insurance or annuity premiums. Premiums paid on insurance to secure loans. Premiums paid for a policy that covers earnings lost due to sickness or disability.

Are homeowners insurance premiums tax deductible?

Homeowners insurance premiums are generally not deductible on your personal income tax return. However, there may be cases where you can deduct homeowners insurance premiums as a business expense. Consult a tax professional for more details about your specific situation.

When can you get rid of mortgage insurance premium?

If your payments are current and in good standing, your lender is required to cancel your PMI on the date your loan is scheduled to reach 78% of the original value of your home. If you have an FHA loan, you'll pay MIP for either 11 years or the entire length of the loan, depending on the terms of the loan.

What home expenses can you write off?

Deductible house-related expenses
  • Insurance including fire and comprehensive coverage and title insurance.
  • The amount applied to reduce the principal of the mortgage.
  • Wages paid to domestic help.
  • Depreciation.
  • The cost of utilities, such as gas, electricity or water.
  • Most settlement or closing costs.

What bills can I write off on my taxes?

Deductions for taxes: A list of helpful options
  • Retirement contributions and Traditional IRA deductions. ...
  • Student loan interest deduction. ...
  • Self-employment expenses. ...
  • Home office tax deductions. ...
  • HSA contributions. ...
  • Alimony paid. ...
  • Educator expenses. ...
  • Charitable donations deduction.

Can I claim my water bill on my taxes?

If you own or rent a brick-and-mortar business or office space, you can deduct 100% of the necessary utilities such as gas, electricity, trash, and water. For those claiming the regular home office deduction, you can only subtract the portion used for business.

What tax deductions are 100% deductible?

What Is a 100 Percent Tax Deduction?
  • Furniture purchased entirely for office use is 100 percent deductible in the year of purchase.
  • Office equipment, such as computers, printers and scanners are 100 percent deductible.
  • Business travel and its associated costs, like car rentals, hotels, etc. is 100 percent deductible.

How can I get a bigger tax return?

4 ways to increase your tax refund come tax time
  1. Consider your filing status. Believe it or not, your filing status can significantly impact your tax liability. ...
  2. Explore tax credits. Tax credits are a valuable source of tax savings. ...
  3. 3. Make use of tax deductions. ...
  4. Take year-end tax moves.

What are three itemized deductions I could claim?

Types of itemized deductions
  • mortgage interest you pay on up to two homes.
  • your state and local income or sales taxes.
  • property taxes.
  • medical and dental expenses that exceed 7.5% of your adjusted gross income.
  • charitable donations.