Question: Are COBRA premiums tax deductible?
I generally do not itemize when I file for taxes since my medical expenses are not too high. This year also, my medical expenses are not high but I’ve paid COBRA premium. Is that tax deductible?
Can I claim tax benefits for cobra premium whether or not I itemize? Please explain how.
When does the expenditure come into account in regards to tax accounting – the year we make the payment or the year for which we made the payment? For example, if I pay my COBRA premium for December of 2006 in January of 2007, should I account for it in 2006 or 2007?
Answer: If your medical expenses (including COBRA premiums(are more than 7.5% of your adjusted gross income, then you would be able to deduct them if you itemize and only if you itemize.
How do you do it? You fill in the number on the 1040 Schedule A. See the source link for mroe information.
It’s based on when you made the payment, so that would count for 2007.
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