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Category: Tax
Satisfied Customers: 5884
Experience:  CPA with tax experience.
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I have a situation with the IRS and need an answer. I was

Customer Question

I have a situation with the IRS and need an answer. I was unemployed for 16 months and I pay a premium monthly for an insurance policy on a credit card to cover the payments while unemployed. My tax advisor states that the payments made on this card is not taxable due to me making monthly premiums like disability for example. Could someone advise me as to the state law or statute to support my claim?
Submitted: 7 years ago.
Category: Tax
Expert:  JKCPA replied 7 years ago.

Thanks for your question. Does the IRS want to tax your premiums you paid or disallow the amount you claimed on Schedule A? There is no way premiums you pay can be taxable. This is not considered income. It is an expense. If you paid health/disability insurance premiums by credit card or check, they are non-taxable; furthermore, they are deductible on Schedule A, line 1 subject to the 7.5% AGI limit. For more information see IRS Publication 502 Insurance Premiums

"You can include in medical expenses insurance premiums you pay for policies that cover medical care. Medical care policies can provide payment for treatment that includes:


If you have a policy that provides payments for other than medical care, you can include the premiums for the medical care part of the policy if the charge for the medical part is reasonable. The cost of the medical part must be separately stated in the insurance contract or given to you in a separate statement."


Hope this helps,



Edited by JK_CPA on 11/2/2009 at 10:48 PM EST
Customer: replied 7 years ago.
The monies that the insurance company paid on my behalf are being listed as taxable income when my tax advisor states that these amounts do not count as taxable income.
Who is correct? Are these payments counted as taxable income?
Expert:  JKCPA replied 7 years ago.
Were these health benefits or disability benefits or life insurance benefits?