Health Care
The most frequently asked tax questions related to Health Care
How can I get a copy of my medical information file that was used to deny me medical insurance?
Asked Thursday, October 12, 2000 by an anonymous userCPA Answer:
Many people don't realize a medical information file is kept on them. It is similar to your credit report that is used by lenders to consider you for a bank loan. You can request a current copy of your medical information file by writing to the Medical Information Bureau at PO Box 105, Essex Station, Boston MA 02112 or call the bureau at 617-426-3660. If you see a mistake on your report you have the right to request that it be fixed. You will have to prove that the information is incorrect.
Can I avoid the early withdrawal penalties if I want to end my cash value life insurance?
Asked Thursday, October 12, 2000 by an anonymous userCPA Answer:
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You can avoid early withdrawal penalties and taxation on accumulated interest on a life insurance policy by doing a tax-free exchange into a no-load, commission free variable annuity. Speak to your local CPA about this tax strategy.
What is the Federal Government's Flood Insurance phone number ?
Asked Thursday, October 12, 2000 by an anonymous userCPA Answer:
Contact FEMA at: - Disaster Assistance- Telephone: 1 (800) 621-FEMA (3362)- TDD: 1 (800) 462-7585- Fax: 1 (800) 827-8112
Is the insurance reimbursement for excess living costs when the fire made me vacate my house taxable?
Asked Thursday, October 12, 2000 by an anonymous userCPA Answer:
The reimbursement is generally tax- free if you are paid under an insurance policy for living expenses resulting from the loss of occupancy or for a loss of use of your residence when your principal residence is destroyed or damaged by fire, storm or other casualty. Speak to your local CPA about the taxability of your reimbursement.
If I did not file an Insurance claim, can I still claim a deduction on my tax return?
Asked Thursday, October 12, 2000 by an anonymous userCPA Answer:
If you are insured for the full loss you incurred, but you do not file a claim, you cannot claim a deduction on your tax return.
Doctor's malpractice insurance
Asked Thursday, October 12, 2000 by an anonymous userCPA Answer:
A doctor who is not self-employed, but works for a hospital, may deduct premium costs as an Itemized deduction on IRS Schedule A.
A self-employed doctor may deduct the premium costs of malpractice insurance as a business deduction.
A self-employed doctor may deduct the premium costs of malpractice insurance as a business deduction.
Insurance payments made for embezzlement - deductible?
Asked Thursday, October 12, 2000 by an anonymous userCPA Answer:
Insurance policy premiums paid for the protection of your business covering situations such as embezzlement, burglary, accident, fire, storm, theft, workman's compensation, and public liability, are business expenses and are deductible.
Is the exchange of one life insurance policy for another one taxable?
Asked Thursday, October 12, 2000 by an anonymous userCPA Answer:
The exchange of one life insurance policy for another one is considered a tax-free exchange. Also, an exchange of an annuity contract for another annuity contract with identical recipients is a tax-free exchange. An endowment policy for another endowment policy that provides for regular payments beginning no later than the date payements would have started under the old policy is considered a tax-free exchange.
Is the $200,000 I received as the beneficiary of my mother's life insurance policy taxable to me?
Asked Tuesday, October 03, 2000 by an anonymous userCPA Answer:
Life insurance payments you received are not reportable or subject to income tax.