by Guest » Fri Nov 15, 2013 04:12 am
I tried to find out something online but failed. At my job, we pay health insurance premiums pre-tax. Now if I go to an exchange the coming year and purchase health insurance on my own, would those premiums be tax deductible? Or, do I need to create some kind of HSA or FHA account in order to pay those premiums with before tax dollars?
Posted: Fri Nov 15, 2013 04:48 am Post Subject:
Everything you are asking about is wrong. If you are paying health insurance premiums with pre-tax money, you have already received the equivalent of a tax deduction. Apparently you fail to understand that concept.
Because you have health insurance where you work, you cannot go the the exchange and get health insurance unless your individual cost of health insurance is more than 9.5% of your household income, or receive premium tax credits, or get a tax deduction for your premium payments.
Because you have health insurance where you work, you cannot have an HSA, because you don't have a High Deductible Health Plan. And even if you did, you still cannot deduct health insurance premiums or pay the premiums with HSA money. You can only deduct your contribution to the HSA, and only when you purchase a HDHP.
The only persons who may deduct the full cost of their health insurance premiums are self-employed business owners. And I don't think you are.
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