shanravi_29 asked:
I want to choose my own insurance instead of company sponsored plan.
Usually when we elect company sponsored plan the premium on health insurance
is tax deducted from the paycheck. But if I choose and pay my own insurance Can I still make tax deducted from each paycheck? or should I apply tax deduction during tax filing?
Leslie
I want to choose my own insurance instead of company sponsored plan.
Usually when we elect company sponsored plan the premium on health insurance
is tax deducted from the paycheck. But if I choose and pay my own insurance Can I still make tax deducted from each paycheck? or should I apply tax deduction during tax filing?
Leslie
You can’t payroll deduct if you are paying your premiums on a private insurance plan. The insurance company will be billing you not your company. If you are self-employeed, have 1099 income, you deduct the premiums from your taxes. You have to weigh the pros and cons of each and make an informed decision on which is better for you.
You need to talk to your employer’s payroll dept.
Some states don’t allow “list billing,” where your employer deducts your individual health insurance premiums from your paycheck pre-tax by using a “Cafeteria Plan”. If your state allows list billing, your employer agrees to set it up, and your chosen insurance company agrees to list bill, it usually isn’t allowed if your employer also offers a group health plan.
You are wise in choosing an individual policy because you own the policy, not your employer.
Also, I am not a tax guy, but I don’t think you can deduct your insurance premiums on your 1040.
Don
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