How medical premiums are deducted in the U.S.
There is no general federal deduction for personal insurance premiums. Unlike systems that give every taxpayer a set allowance for protection policies, U.S. federal tax law reaches insurance costs only through three narrower routes, and life or disability premiums do not qualify at all.
The first is the self-employed health insurance deduction, taken above the line and capped at the earned income from the business. The second is an HSA contribution, also above the line. Anything left over joins other unreimbursed medical costs and is deductible only to the extent it exceeds a percentage of adjusted gross income, and only if you itemize.
Basis and date — the self-employed deduction is 26 U.S.C. sec. 162(l), the medical expense floor is sec. 213(a), and HSA rules are in sec. 223 with contribution limits published annually by the IRS. Content reflects September 2026; confirm current limits before filing.
This tool gives a rough estimate and does not determine your actual deduction or refund. Marketplace premium tax credits, employer cafeteria plans and state rules all interact with these amounts, so review your return with a tax professional.
Frequently asked questions
Generally no. Premiums for personal life, disability and similar protection policies are not deductible on a federal return. Health coverage is the exception, and only through the routes shown here.
26 U.S.C. sec. 162(l) limits the above-the-line health premium deduction to the earned income from the trade or business the plan relates to. Premiums above that limit are not lost, but they move to itemized medical expenses.
No. Medical expenses above the AGI floor only count when you itemize on Schedule A, so they help only if total itemized deductions beat your standard deduction. The self-employed premium and HSA deductions work either way.