Tax Deductions on Govt Required purchases

One of the greatest peeves I have is to take time to do my Income tax.

And I am trying to get ahead of the game this year.

Something hit me that didn't make any sense.

Government required purchases.

That is right, there are required purchases our Government has placed on us which are a burden and should be allowed to be deducted at least in part on our income tax. i.e. health insurance, car insurance just to name two.

i.e.I am forced to buy health insurance I spend over $300 per month on me and my wife. seeing I am making the minimum poverty level $300 a month sure does cut into our monthly budget. Our kids are covered by the FAMIS but we are not. It the government required we buy something we should be able to deduct it from our taxes and be reimbursed at least in part.

It just is not fair the government can force us to buy something and then not give us a tax break on the required purchase.

a reply to: ChesterJohn

I am covered under "another source", but WT effff???? Obamacare is not tax deductible? ???

a reply to: ReadLeader

Mine is through my employer but I either have to get it through them or through the Government insurance exchange.

a reply to: ChesterJohn

If you are only earning poverty level and have children don't you get earned income tax credit resulting in a net gain on what you pay in? Frankly poverty level is not a livable wage and you shouldn't have to pay any taxes. Having to shell out $300 a month on mandated insurance is also bs if you're trying to make ends meet on that income.

But also remember, if you're at poverty level, you should already be getting a lower premium on the insurance than higher wage earners. Obamacare was always going to end up being the largest burden to the working poor, those who don't work just get a free ride and people making better wages can absorb it better. Nobody seemed to understand the working poor simply cannot afford another expense when they are already pulling off a miracle making ends meet.

I hope you can find something better and with insurance, the job market is just crap in spite of what this administration would like to tell us.

originally posted by: ChesterJohn
seeing I am making the minimum poverty level $300 a month sure does cut into our monthly budget. Our kids are covered by the FAMIS but we are not.

In other words, you getting a government subsidy with FAMIS is okay since someone else is paying for it and you would like some additional subsidies because you think you're entitled to them.

If you are at the "minimum poverty level" your insurance premiums are already partially subsidized. You're not paying full price for them and $300 a month for two people is a very good rate.

Medical insurance is considered a medical expense, and if your medical expenses exceed 10% of your adjusted gross income, those expenses are deductible.

Between FAMIS and your reduced rates you are already heavily subsidized.

a reply to: Ksihkehe

Govt required we buy insurance. There is no Medicaid for me and my wife the only thing we qualified under that was birth control pills and condoms and that is with no income.

With Income I pay it is best to get it through my employer. unless AMA can give me a less pay with more options I am better off keeping my current plan.

I do get EITC but it was not very much last year.

The thing is if the govt can force you to purchase something it should be tax deductible seeing it is mandatory.

How about all those little unknown charges on our Electric, Telephone and other utility bills?

Sometime those unknown charges are as much as my actual consumption cost.

Yeah, we should be able to claim the tax part of the ACA premium at least.
The subscriber passes it on to the consumer...we should at least be able to take it off our Gross Income....whether or not you itemize....as many cannot do any longer.
On my premium, about $40.00 is tax, IIRC.

a reply to: DontTreadOnMe

I think they take my insurance out before tax.

a reply to: schuyler

First of all, only the children get FAMIS. I pay for mine and my wife via out employer. There is no substidy through our employer I pay over $300 per month on insurance that we barely use if we use it at all. I would rather have no insurance and use the $300 plus on my family however I am mandated by law to have health insurance so why can't we have a deduction for it.

a reply to: ChesterJohn

Health insurance costs are deductible or rather that portion of your out-of-pocket costs that exceeds 10% of your adjusted gross income. (Raised from 7% which is a peeve of mine).

However I believe it would be better for everyone if all health care costs where fully deductible other then 'purely' elective expenses.

As for auto insurance - that would be a state not federal issue.

A lot of that is included under the standard deductions. I do not know if they raised the level when Obamacare got required. I know they are trying to tax employer supplied healthcare now, maybe because it is covered in the deduction. I wasn't able to deduct my health insurance costs anymore a while ago unless I put them through the business as a benefit. Even though it didn't apply because I had healthcare through the wife, I learned some of the changes in the rules because I had employees before.

I know this isn't really relevant, but for the regular guy, health insurance was never really deductible before. Only employers used to get the break.

a reply to: ChesterJohn

I see, I was under the impression you were on a government plan. IIRC some insurance plans through employers are actually taxed through Obamacare, not positive though. You'll be fortunate if you're insurance doesn't increase in price as the chickens come home to roost on this terribly crafted law. The money spent creating the exchange alone could have provided real relief to people in need. The real winner in it all was the insurance industry, the evil insurance companies they constantly spoke I'll of when pushing the ACA.

All I can say to the rest is to reiterate that the working poor always get the short end of the stick as far as the burden of taxes. They will say a 1% increase in sales tax or electric or gas tax only costs the average person $XX a year, but that $XX a year is a much bigger burden on the working poor. Somehow the working poor have largely been convinced progressive policies help them and it's a complete lie. Progressive policy taxes the rich, but the benefits go to those with little or no income. My mother was a staunch democrat though we never got much of a break because she was always working barely getting by.

I think the people working and barely making it should be getting the opportunities being squandered on those who don't want to work at all. Education funding and trades training, maybe some pathways to home ownership.

a reply to: Ksihkehe

correct I had to get health insurance for me and miy wife through my new employer and it was $1490 per month for two. Half of my pay was going to health insurance. and this was required until 2018. Now our State has sent insurance cards saying everyone is now covered under Medicaid and a Subsidiary Insurance I have United Health And now it cost me nothing. BUT you need to have everything approved above health maintenance, you can have visits when sick, get all the vaccinations, have physical therapy if needed for your problem, but if you need a major surgery like /
Disc surgery it has to be approved. No one does mine in our state and they wont cover it if I go to another state. That is a downfall of having health Insurance from your own state.