Is dental insurance tax deductible?

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A: Dental insurance premiums may be tax deductible. To be deductible as a qualifying medical expense, the dental insurance must be for procedures to prevent or alleviate dental disease, including dental hygiene and preventive exams and treatments. Dental insurance that is for purely cosmetic purposes, such as teeth whitening or cosmetic implants, would not be deductible.

Where Are Dental Insurance Premiums Deductible?

For most taxpayers, the cost of medical and dental insurance premiums paid during the tax year are deductible on form 1040 Schedule A as a medical and dental expense. Only the total of all qualifying medical and dental expenses, including insurance premiums, that when combined exceed 10% of the taxpayer’s adjusted gross income (AGI), will actually be included in the total of all itemized deductions.

For example, if a couple has an AGI of $100,000 and a total of $8,000 of qualifying medical and dental expenses, including dental insurance premiums paid, then none of these expenses would be included as an itemized deduction. Ten percent of the AGI would be $10,000, which is greater than the couple’s total medical and dental expenses.

For a self-employed individual, the cost of dental insurance may be deducted on Form 1040, line 29, without having to itemize deductions on Form 1040 Schedule A with the 10% of AGI limitation described above.

Other Limitations

Dental insurance premiums paid with funds from a Flexible Spending Account (FSA) or Health Savings Account (HSA) are not deductible, as these funds are pretax and the IRS does not allow a double tax benefit.

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