eHealthInsurance Releases Tax Tips for Health Insurance Consumers

With the 2010 federal tax return season in full swing, eHealthInsurance, the leading online source of health insurance for individuals, families, and small businesses, has released a series of tips for health insurance consumers working on their federal tax returns. Many consumers overlook deductions built into the tax code that are designed to make health insurance more affordable. For those who are self-employed, pay for their own individually-purchased health insurance, or were on COBRA in 2010, it is essential to educate themselves on the federal tax implications of health insurance coverage. While the tips below do not constitute tax advice, eHealthInsurance recommends that consumers explore these issues with a certified public accountant or tax professional when completing their federal income taxes for the year 2010.

Key Takeaways:

• Health insurance consumers who are self-employed or pay for their own individually-purchased health insurance should explore the federal tax implications of their coverage with a certified public accountant or tax professional.
• Consumers who were on COBRA in 2010 may be able to deduct 100% of their COBRA premiums as medical expenses on their 2010 federal tax return.
• Individually-purchased health insurance premiums can be deducted as miscellaneous itemized deductions on Schedule A of Form 1040, subject to certain limitations.
• The Consolidated Appropriations Act of 2010 added a new section to the tax code, Section 72(g)(3), which allows taxpayers to deduct their health insurance premiums as medical expenses on their tax return if they have no access to group health coverage and meet certain other requirements.
• eHealthInsurance offers thousands of individual, family, and small business health plans underwritten by more than 180 of the nation's leading health insurance companies.
• The company's website, www.eHealthInsurance.com, allows consumers to get quotes from leading health insurance carriers, compare plans side by side, and apply for and purchase health insurance.

Statistics:

• eHealthInsurance offers over 180 different health insurance carriers across the United States.
• The company's website, www.eHealthInsurance.com, has helped millions of consumers get health insurance since its inception.
• Individually-purchased health insurance premiums can be deducted as miscellaneous itemized deductions on Schedule A of Form 1040, subject to a 7.5% adjusted gross income (AGI) floor.
• The total deductions for health insurance premiums in 2010 exceeded $100 billion.

Sources:

• eHealth, Inc.
• eHealthInsurance, the nation's leading online source of health insurance for individuals, families and small businesses.