VSA - Medical Insurance FAQs - Leo Flashcards
What does the deductiblity of medical insurance premiums depend upon?
Whether or not the individual itemizes deductions on their tax return.
For those that itemize deductions what can they deduct?
The amount by which premiums paid for medical care insurance plus all reimbursed medical care expenses exceeds 10% of the taxpayer’s AGI.
What medical expenses are deductible?
Medical care expenses include expenses for medical and dental care, as well as for prescribed drugs and insulin for the taxpayer, spouse and any dependents.
What kind of premiums are not deductible?
Premiums paid for hospital insurance policies that pay a stated benefit for each week of hospitalization, regardless of whether other reimbursement is received, are not deductible as medical care insurance premiums.
How are medical care expense benefits treated under income tax laws?
They are exempt from income tax.
