Tax Facts

382 / Are premiums paid for personal disability income coverage tax deductible?

Premiums for non-medical care, such as personal disability income coverage, are not deductible.1 Only premiums for medical care insurance are deductible as a medical expense ( Q 342, Q 487).

A deduction is allowed for medical care that is not otherwise compensated for by insurance. The deduction is allowed to the extent that the medical care expenses exceed 7.5 percent of the taxpayer’s adjusted gross income. The 10 percent limit was permanently reduced to 7.5 percent in 2020. The threshold is 7.5 percent for the alternative minimum tax.

1.     IRC § 213(d)(1).

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