What are the tax implications of theeCommPPO Plan and HMO?
EXAMPLEAssumptionsBob is single and younger than 65Bob has enrolled in theeCommercePPOPlan with annual premiums of $832 a yearBob’s total annual taxable income from allsources is $100,000Bob’s itemized deductions do not exceed$6,350Bob had some qualified medical expensesof $3,000 including medical premiumsCommentsBob’s itemized deductions are less than thestandard deductions, so he is better off takingthe standard deductionBob cannot deduct any medical expenses,including the expenses, because his expenses areless than $10,000 (10% of AGI)The federal and state (CA) tax impact to Bobrelated to paying post tax premiums is $285.
Qualified medical expenses, including health insurance premiums, in excess of 10% of adjusted gross income may be deducted on your federal and possibly state income tax return if you itemize yourdeductions.*
EXAMPLE BASED ON 2017 TAX RATES
HMOs include Kaiser CAeComm, Kaiser OReComm, andBlueCaresEast/SEeComm
* Please reachout to your tax advisor to learn more abouttax implications foryour specific situation.