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//One of the problems with US health insurance is that it is tax deductible only when "paid" by the employer.// Healthcare expenses are deductible, but only th
by codva 14y ago
//One of the problems with US health insurance is that it is tax deductible only when "paid" by the employer.//
Healthcare expenses are deductible, but only those that exceed 7.5% of your AGI. So if you are a software developer making $100K a year at a start up with crappy health insurance, you can start deducting expenses once they exceed about $7500, depending on your tax situation. Of course, health premiums deducted pre-tax from your paycheck are not deductible at all.
- fr0sty 14y agotax deductible above 7.5% AGI is very different from tax deductible above $0. Your $100k/yr developer would pay $2,100 in tax on the first $7,500 before the deduction takes effect. Also, the reason you can't deduct the "pre-tax" premiums is because you were never taxed on them in the first place.