Missouri Health Insurance Deduction

Missouri has a tax deduction for health insurance premiums

 

When you live in a state that has an income tax, like Missouri, you need to be aware of the state’s little deductions that aren’t automatically on your federal tax return.  One of these is the Health Insurance deduction.

 

It’s very difficult to claim any medical deductions on your federal income tax return because you have to meet the requirement that your medical expenses exceed 10% of your adjusted gross income.  In Missouri, you don’t have that.  If your health insurance isn’t already exempt from taxes, you can claim your health insurance as a deduction on your Missouri State income tax return.

 

You’ll find the deduction on line 12 of the Missouri schedule A.  For most people, its just a straight, direct entry on the form.  If you happen to have been able to claim your health insurance on your federal schedule A, or had medicare payments withheld from your Social Security, there’s a worksheet to determine just how much of a deduction you’ll get to claim on your Missouri return.  (For some people, your computer software will automatically calculate the amount of medicare insurance you can deduct, but you need to watch out if you’re adding additional insurance payments that you don’t delete the medicare payments.)

 

The health insurance deduction is especially valuable to senior citizens who may qualify for the Missouri Property Tax Credit.  It not only reduces their taxable Missouri income, but by reducing the income, it can increase the amount of property tax credit they receive.  Many seniors who qualify for the property tax credit don’t have any Missouri taxable income so the preparers don’t bother to look for deductions and that’s a mistake.

 

If you’d like to take a look at the worksheet for the qualified health insurance deduction, click on this link:

Missouri Health Insurance Worksheet

 

Also, if you happen to be self employed, be sure to check my post about the Missouri Self-Employed Health Insurance Tax Credit.  If you qualify for that, it’s even better for your taxes than the deduction.

 

 

57 thoughts on “Missouri Health Insurance Deduction

  1. Hi Erik,
    You report what you actually paid, plus the additional that you have to pay back.

    Likewise, for people who wind up getting a refund on their premiums, they report what they paid, less the health insurance refund they’re getting on their federal return.

  2. Hi Jerry,
    You’ve got it right. A net premium tax credit would reduce what you paid in premiums. Likewise, if you had an excess advance premium repayment, that would be added to your health insurance deduction.

  3. Sorry if this was already answered. How does the interplay with the ACA? Can I subtract the actual premiums I paid (Column A of my 1095-A)? Can I subtract the SLCSP premium (Column B of 1095-A)? What about the PTC I had to pay back on Fed? (1095-A column C) – can I add that to Column A amount paid since I ended up paying that back on the Fed return?

  4. I am retired and on a Cobra plan from my last employer. I pay monthly premiums for this Cobra health insurance plan. Can I deduct my monthly health insurance premiums ?

  5. Hi Jan,
    Here’s a twist that is not apparent to me, but if I get an ACA Net Premium Tax Credit (Fed 1040 line 69), do I subtract this credit from my total health premiums paid and use that new number when using the Missouri Health Insurance Worksheet? For example, if my premiums were $20,000 and my PTC was $11,000 do I use $9,000 for Worksheet line 6, or do I use the original $20,000? Nowhere in the Missouri tax form instructions could I find anything about how to handle the PTC as it relates to this worksheet.
    Thanks so much! Jerry

  6. Hi Harold,
    I agree that if the insurance is after tax that he could deduct it. And yes, he should ask his employer. But generally, if insurance is paid through the employer – whether it’s employer paid, or payroll deduction – it’s pre-tax.

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