Health Care Insurance Premiums
Premiums that were itemized or otherwise deducted in determining the federal taxable income on the federal return cannot be deducted on the Utah income tax return.
A taxpayer may deduct the premiums paid by the taxpayer for health care insurance during the taxable year for the taxpayer, spouse and dependents. Qualifying taxpayers are subject to the following requirements and limitations.
Requirements
To qualify, the taxpayer or taxpayer's spouse must not be eligible to participate in a plan offered and funded (fully or partially) by an employer or former employer. A retiree, who may participate in a plan offered and funded (fully or partially) by a previous employer, cannot take this deduction. Employees who elect not to participate in a plan offered and funded by an employer or former employer cannot claim a deduction. Pre-tax deductions from wages through employer-sponsored programs, such as a cafeteria or flex plan, cannot be claimed as a deduction.
Limitations
Qualified taxpayers who meet the above requirement may have their deduction limited by:
- Premiums that are fully or partially reimbursed or funded by the federal, state or any agency or instrumentality of the federal government or state, excluding Medicare.
- Premiums paid for health insurance that were previously deducted on the federal return under IRC Code sections 125, 162 or 213.
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