Insurance premiums a taxing issue for filers
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Are insurance premiums tax-deductible? Forty-nine percent of Americans think so, according to a recent survey of 1,550 people conducted by the consumer research and analysis website ValuePenguin.com.
That means people could be heading for trouble with the Internal Revenue Service if they think they can write off the cost of their auto, health, home or life insurance policies as tax deductions, according to ValuePenguin, whose explanation makes one thing clear: it’s complicated.
“In some cases, policyholders can write off their health or auto insurance policies, but this is far from the norm for most Americans,” the company report states, adding that some policies and situations do make the cut for a deduction, such as businesses owners who use insured vehicles to conduct business. Other instances: Policyholders who work from home may be able to deduct the coverage for the square footage used specifically for their job and people who rent out their homes might be able to classify their homeowners' insurance as a business expense, according to the report.
Again, not always clear-cut, according to the report. What is certain, other than death and taxes is a “general sense of uncertainty” for taxpayers, according to ValuePenguin.
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