 TITLE: Are Health Insurance Premiums Tax-Deductible? CONTENT: Should You Take the Standard Deduction or Itemized Deduction?\n-------------------------------------------------------------\nThere are two main questions to ask when deciding whether to itemize:\n**Are your medical expenses greater than 7.5% of your AGI?** You can only deduct the portion of your medical expenses that exceeds this amount. For example, if your AGI is $100,000 and your medical expenses were $10,000, you could only deduct $2,500 of that amount ($10,000 - $7,500).\n**Do your itemized expenses exceed the standard deduction?** The standard deduction is a set amount you can deduct from your taxable income to reduce your tax liability. For tax year 2021, the standard deductions are:\n*   $25,100 for married couples filing jointly\n*   $12,550 for single taxpayers and married individuals filing separately\n*   $18,800 for heads of households\nAdditional deductions are allowed for blind people and those 65 or older. If someone else claims you as a dependent, your standard deduction may be lower.\nIf your total deductions are higher than the standard deduction, it may make sense to itemize. Medical expense deductions aren't the only factor to consider. You may also want to itemize deductions if you:\n*   Paid mortgage interest and property taxes on your home\n*   Made significant charitable contributions\n*   Suffered major casualty or theft losses that weren't insured\nSome people don't qualify for the standard deduction. How deductions affect your state tax bill may also factor into your decision. For more information, visit the IRS website, which has a tool you can use to see if you can deduct medical expenses, use tax preparation software or talk to your tax preparer. END