Examples of how health insurance premiums are quite often tax deductible

Is it possible that health insurance premiums are deductible on your taxes? Chances are, if you're self-employed, you may be able to deduct those monthly premiums right off your taxes every year. There may be other circumstances in which health costs are deductible as well, even if you're not someone who is self-employed.

Examples when health insurance expenses are taxable?

For most of those who are self-employed, the money you pay out to maintain health care coverage for yourself and your family counts as a deductible work-related expense. They are not deductible if you or others in your family are already receiving coverage under another plan, such as that offered by a spouse's employer.


For those who are not self-employed, but insteaad work for a company which offers a health savings account, or HSA, these expenses may also be tax deductible. The amount which you contribute personally into your HSA can be deducted up to a certain dollar amount, which differs for families vs. individuals. Since HSA contributions are often collected pre-tax, this benefit can pack double benefit for families on a budget.

Other Deductions

Even if you don't have access to an HSA which is offered by an employer, and you are not self-employed, you might still be able to deduct health and dental expenses from your taxes. The IRS has provisions for deducting your health care expenses under certain circumstances, including your monthly health insurance premiums . The expenses must total more than a certain percentage of your income. Check with the IRS website for specific rules, as the tax guidelines often change from year to year.

Examples of what health care expenses may be deducted are many and fairly generous. Out-of-pocket expense for personal health items which are medically necessary but may not be fully covered by insurance are one example, such as contact lens solution, or an over-the-counter supplement which is taken at your doctor's recommendation. Optional health care procedures like LASIK eye surgery can also be deducted, as well as costs for prescription medications.

Remember, before deducting any health care expenses from your taxes, check with your tax accountant in order to make sure your deductions are compliant with current regulations.

Cheap flights and compensation for delays

Some budget carriers have a better record than others when it comes to delays. It's part of the price you pay. Some carriers use older airplanes which break down more often... No matter what the reason, the same European rules apply whether you're waiting for full-price or cheap flights. As an example, a Monarch flight was delayed for more than seven hours in July, 2012. The reason was that the plane due to make the pick-up broke down and it took a longer than expected time to get the replacement part. The flight eventually left at 3 am. Monarch refunded the cost of the ticket and provided food vouchers during the wait. It refused accommodation on the ground that it was more disruptive to passengers to have the chance to sleep until 1 am before being rousted out and sent back to the airport in time to board the plane. Whether this is an appropriate view is irrelevant. The principle of a price refund and food is clearly correctly applied.

Note this was not an example of cancellation. The plane was eventually repaired and took off, albeit later than scheduled. On November 19, 2009, Sturgeon v Condor Flugdienst GmbH and Bock and Others v Air France SA in the European Court made a very significant ruling. Angry claimants were arguing that, after a point, delay becomes the same as a cancellation. The only issue was how long. In the end, the court said three hours delay due to the fault of the carrier should be treated as a cancellation with all the rights of compensation that flow from that. However, the right of compensation is not absolute and the airline avoids payment if it can prove that there was an "extraordinary circumstance", e.g. a volcano spewing out ash and, no matter what the airline had done, the delay was unavoidable. In the case of Monarch, the English courts have been asked whether the delay was avoidable. This seems likely. It was an old plane that broke down through lack of maintenance and no replacement part was available in the airport.