 TITLE: Are Health Insurance Premiums Tax-Deductible? CONTENT: Any health insurance premiums you pay out of pocket for policies covering medical care are tax-deductible. (Medical care policies cover treatment including hospitalization, surgery and X-rays; prescription drugs and insulin; dental care; lost or damaged contact lenses; and long-term care, with some limitations.) When preparing your taxes, you can deduct these expenses for yourself, your spouse and your dependents.\nPremiums for insurance purchased through COBRA are deductible, as are Medicare premiums for Part B and D. If you are not enrolled in Medicare under Social Security and are not a former government employee who paid Medicare tax, premiums paid for Medicare A are also tax-deductible.\nIf you buy health insurance through the federal insurance marketplace or your state marketplace, any premiums you pay out of pocket are tax-deductible.\nIf you are self-employed, you can deduct the amount you paid for health insurance and qualified long-term care insurance premiums directly from your income. This reduces your adjusted gross income (AGI), which lowers your tax bill. You may also be able to deduct medical and dental expenses as itemized deductions on Schedule A of IRS Form 1040.\nWhether you're employed or self-employed, however, you can't deduct _all_ of your medical expenses—only the amount exceeding 7.5% of your adjusted gross income. END