Line 18
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18. HEALTH INSURANCE DEDUCTION.

Enter 100% of the amount paid for health and dental insurance premiums. This includes all supplemental health insurance, such as Medicare B supplemental medical insurance. 100% of health insurance premiums for long-term nursing home coverage qualify for the health insurance deduction are not subject to Schedule A limitations. It is typically to your advantage to take the deduction on line 18 instead of Schedule A, due to the Schedule A reduction of medical and dental expenses by 7.5% of Federal AGI. Schedule A may not contain any health insurance premiums which were used as a deduction on line 18.

Do not deduct pretax premiums
This deduction is not available to individuals who have paid health insurance premiums on a pretax basis. Pretax occurs when an employer subtracts the amount of the health insurance premium from an employee’s gross wages before withholding Federal and state income taxes. See your payroll department if you do not know whether or not your health insurance was paid on a pretax basis.

MARRIED SEPARATE FILERS:

If one spouse is employed and has health insurance premiums paid through his/her wages, that spouse will claim the entire deduction. If both spouses pay health insurance premiums through their wages, each spouse will claim what that individual paid.

If both spouses have self-employment income, the deduction for self-employed health insurance must be allocated between the spouses in the ratio of each spouse’s self-employment income to the total self-employment income of both spouses. If health insurance premiums are paid directly by one spouse, that spouse will claim the entire deduction. If both spouses paid through a joint checking account, the deduction would be allocated between the spouses in the ratio of each spouse’s net income to the total net income of both spouses. For this net income calculation, do not include line 18, the health insurance deduction.

(Examples of how to prorate)

Go to Line 17

Go to Line 19