Can You Claim Health Insurance Premiums on Taxes?

Can You Claim Health Insurance Premiums on Your Taxes?

In the U.S., many people wonder: can you claim health insurance premiums on your taxes? The answer depends on your employment status, filing class, and specific plan details. This guide explains the current rules, key eligibility requirements, and how to properly claim deductions to reduce your tax burden.

When Is It Allowed to Claim Premium Deductions?

Not everyone qualifies for a tax break on health insurance costs. Generally, you can deduct premiums if you’re self-employed or have a traditional employer-sponsored plan and file as a Single, Married Filing Jointly, or Head of Household. For most employees, employer-paid premiums are not tax-deductible under IRS rules, but self-employed individuals often benefit from full or partial deductions.
IRS Publication 502 outlines that health insurance premiums paid or set aside in advance—through a Health Savings Account (HSA) or Flexible Spending Account (FSA)—can reduce taxable income. However, premiums paid solely through payroll deductions without an HSA or FSA setup typically don’t qualify for itemized deductions anymore since the Tax Cuts and Jobs Act limited standard deductions.