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Sorry, but no 'blanket' 100% deduction

Posted By: PsychicMT on 2008-07-27
In Reply to: Health Insurance for IC - To Ins or Not

  First, forget about a catastrophic illness - if you have a gallbladder or appendix, you can lose your home, right down to just keeping the shirt on your back. I know this for a fact because it happened to me.


 Secondly,  I fell into the insurance premiums are 100% covered trap personally (2006/2007).    When my accountant actually did my taxes and explained the formula used for determining how much of insurance premiums (and out-of-pocket expenses) are figured, my deduction ended up less than 50% of my oop amount.  I was disbelieving and demanded my accountant prove this, so they called the IRS and believe me, they proved it.  If someone tells you, without reviewing the details of your estimated premium/OOP yearly costs and estimated yearly earnings, that your premiums will be automatically 100% deductible, they do not know what they are talking about.  My point is not to be argumentative, it is to remind you that guessing without expert advice about your personal situation can be very costly.  Learn from those of us who have paid dearly for poor judgement and bad advice.




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