Iowa Department of Revenue 1040 Instructions 2008

18. HEALTH AND DENTAL 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 and Medicare D voluntary prescription drug insurance program (not “Medicare tax withheld” on your W-2). 100% of health insurance premiums for long-term nursing home coverage qualifies for the health insurance deduction and is 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 or dental 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 or dental insurance premiums on a pretax basis. Pretax occurs when an employer subtracts the amount of the health or dental 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 or dental insurance was paid on a pretax basis.

Married Separate Filers:

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

(Examples of how to prorate)

Go to Line 17

Go to Line 19