Are insurance premiums deductible? Forty-nine percent of Americans believe so, according to a recent survey of 1,550 people conducted by the consumer research and analysis site ValuePenguin.com.
This means that people can go to trouble with the Internal Revenue Service if they think they can write off the cost of their car, health, home or life insurance as a tax deduction, according to ValuePenguin, whose explanation clarifies one thing: it is complicated.
“In some cases, policyholders can write off their health or car insurance. policies, but this is far from the norm for most Americans, ”says the corporate report, adding that certain policies and situations make the cut for deductions, such as business owners using insured vehicles to conduct business. Other occasions: Policyholders who work from home can deduct coverage for the square footage used specifically for their job and people who rent out their homes may be able to classify their homeowners' insurance as a business expense, according to the report.
Again, not always clear, according to the report. What is certain, other than death and taxes, is a "general sense of insecurity" for taxpayers, according to ValuePenguin.