Deductibility of COBRA Payments

Do I have this right or am I missing something?

While I was employed my share of medical payments reduced my taxable income directly. Now on COBRA I am paying 5 times the prior amount and they are only deductible if they are over 7.5% of income.

Thanks.

Dad1956,

You are not missing anything.

I would guess your cobra health insurance is costing you more than when you were in your employer's plan. Apparently you were making a contribution to an HSA or FSA account. Not all employers offer these plans.

Medical insurance premiums are a legitimate deductable medical expense on Schedule A, line 1 included with your other out of pocket medical expenses and mileage allowance. That total medical expense must exceed 7.5% of your AGI before you can receive any deduction for your medical expenses. Medical expenses are added to other itemized deductions on Schedule A. The total Schedule A deductions must exceed $10,900 (MFJ) for 2008 before you will have any tax benefit.