LA Business Daily

Can health insurance premiums be taken out of your gross income?

My husbands employer has taken his insurance premiuns out of his gross income which has made his gross income lower. Actually his premium was taken out pre tax. Now on his w-2 it doesnt show up at all as if he never earned it.

Public Comments

1. yes meaning you did not have them taken out pretax also since it was done this way you may be able to deduct the cost of the premiums and any other copayments or prescriptions on your Schedule A if you itemize
2. There is nothing improper about an employer deducting health insurance premiums out of ones gross income. However, when that happens you've already seen a "tax benefit" through the lower income on your Form 1040. DO NOT include in your medical and dental expenses on Schedule A any insurance premiums paid by an employer-sponsored health plan unless the premiums are included in box 1 of his W-2. Also, DO NOT include on Schedule A any other medical/dental expenses paid by the plan unless the amt paid is included in box 1 of the W-2. You can't have it deducted from gross AND taken as an itemized ded or the IRS will reject the deduction.