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Financial Planning / Tax Strategies
|Subject: Health insurance rebate||Date: 7/13/2012 1:51 PM|
|Author: numbrel||Number: 116420 of 122904|
I have an individual health insurance plan because it is cheaper than getting health insurance through DH's employer. I just received a rebate check. Evidently, insurers have to spend 80% of premiums each year on health care and if they don't, they have to rebate the appropriate amount to make the 80%, so the rebate is for 2011 premiums paid.
There is a short FAQ at the end of the cover letter and the last questions is whether the rebate is taxable. The answer is: "Please consult your tax advisor, as situations vary."
I think that because I paid the premiums in after-tax dollars, that the rebate isn't taxable to me. It's just a return of my after-tax money. I don't itemize, so the taxes on the money have already been paid.
Is this correct?
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