Friday, September 28, 2012

Health Insurance & Child Support Help

Health Insurance & Child Support Help?
My ex husband currently pays for our children's health insurance and is allowed to deduct the amount he pays for the insurance from his gross income. He has remarried and has additional children from his new marriage, and obviously needs health insurance for this new family. So if he would need this health insurance to cover his new family anyhow can he still deduct this from his gross income? If I put the kids on my health insurance rather would he still be allowed to deduct his cost of health insurance? We live in Massachusetts.
Marriage & Divorce - 1 Answers

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1 :
Fact is, when he adds the new wife & her kids onto his plan at work, it shouldn't cost him anything "extra" to continue covering your kids, too. That is, most group health plans have a rate for employee (him), spouse, and "kids" (1 or 9, doesn't matter - usually - how many). Regarding the tax deductibility of his premiums: NOTE: I'm not a CPA. I don't believe that he can deduct the premiums paid (though there could be exceptions if, for example, he's self-employed, incorporated, etc., etc.). If I remember correctly, your premium "cost" is added to the amount of the healthcare expenses you've paid in the tax year and then that amount is deductible if it "exceeds 5% of your adjusted gross income as stated on line 39" (or something like that). Ignoring the tax deductibility or not issue, I would think that it's a lot less expensive for you to let him pay the premiums on the kids instead of you doing it; if he can find a way to "swing" a tax deduction out of it, then good for him. Hope this helps - have a nice day!

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