My wife has been a non earning (looking for job) member of the family throughout this year, but has been paying for Medical Insurance Premium for whole family through her savings. She was getting Unemployment Income for first 6 months of this year. She paid close to $14K.
We file joint return. Is that premium tax deductible?
Assuming you itemize your deductions, and assuming that the sum of all your medical expenses exceeds 10.0% of your Adjusted Gross Income (AGI), then your medical expenses (including the insurance premiums) after that threshold are deductible.
Putting some numbers in to make it less abstract, suppose your AGI is $100,000, and the sum of all your medical expenses is $22,500, then you have a medical deduction of $22,500 - ($100,000 * 0.10) = $12,500.
