Tax Deductions

[TestPilot]

Here's a question I posed to my accountant. I got a shoulder shrug in reply.

 

The Supreme Court, in their Obamacare decision, declared that government-mandated insurance is really just a tax. That being the case, can I deduct mandatory insurance premiums, including my automobile and motorcycle insurance, from my taxes as taxes paid?

[Dave McReynolds]

If it's a tax, it's a federal tax, and federal taxes are not deductible on your federal tax return. In most states, federal taxes are not deductible on your state tax return either. In the few states where federal taxes are deductible, I think the deduction is limited to federal income tax, but I'm not sure, being from California. Probably the government mandated insurance would be deemed to be some kind of excise tax, and not an income tax.

[kmac]

You CAN deduct anything you want....not saying you will be ok if you do, but you CAN. Is it a legal deduction...I doubt it.

[CVA-42]

Try it and report what happens. What can they do to you? Charge you with income tax evasion?

[Mike]

Here's a question I posed to my accountant. I got a shoulder shrug in reply.

 

The Supreme Court, in their Obamacare decision, declared that government-mandated insurance is really just a tax. That being the case, can I deduct mandatory insurance premiums, including my automobile and motorcycle insurance, from my taxes as taxes paid?

 

Not under the current tax code. There's no broad principal that renders all taxes deductible. Any tax deduction on your federal or state income tax is a creation of statute, and if there is no express provision for deductibility, you're out of luck.

[kmac]

Try it and report what happens. What can they do to you? Charge you with income tax evasion?

 

I would have to HAVE income for them to tax me...still gotta file though.