Sunday, February 26, 2012

Tax deduction for health insurance premiums of non custodial child?

I have an autistic son from a previous marriage. As part of our support %26amp; custody agreement (in lieu of the tradition state child support guidelines), among other things, I take care of his health insurance and medical expenses. Since he lives in a different state, he cannot be covered by the insurance I have with my employer (whose premiums are pre tax), so I pay out of pocket premiums for a policy that is good in his state (blue cross blue shield). My ex would have to pay a lot to have him insured from the policy she has with her employer, so this works well. We have an amicable relationship.

Since he primarily lives with his mom (my ex), he is claimed as a dependent on her taxes. However, I am the one paying the premiums. Can the premiums and medical bills be deducted by either of us? If she get the tax deduction, thats ok, and if I get the deduction, that's ok. I would just like for somebody to get the deduction, because that's more money for our kid. How would we handle this. I pay a little over $5000 a year in premiums, as well as a $1500 HSA.



How would this deduction work?Tax deduction for health insurance premiums of non custodial child?If you pay them, you are the person who can claim them as a medical deduction even if she claims him as a dependent. But the problem is whether you can take a medical deduction. First, you have to itemize. Second, you can only deduct the amount of your medical expenses (including the insurance payments) that's over 7.5% of your adjusted gross income.



If you meet those two rules, yes you can deduct it.Tax deduction for health insurance premiums of non custodial child?While medical expenses are normally limited to those persons listed on your return (taxpayer(s) and dependents), there is an exception for non-custodial parents. The insurance and any costs that you paid out of pocket for your child are deductible as medical expenses subject to the usual 7.5% AGI floor.Tax deduction for health insurance premiums of non custodial child?how much does what you pay exceed 7.5% of your AGI? and with this amount can you also itemize?

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