I just want to be sure I am not missing something. Our only income is Social Security Disability and what ever money I use from our IRA's for medical insurance for my wife. Her insurance is COBRA until summer of 2010. In 2009 we paid out about $10,000.00 for her. The delima is this money is reported as income but it with the social security is not enough to pay taxes usually.

Is there any thing we can do to get back some of the insurance money?



Thanks so much



Jbert

Jbert:

Maybe. If the $10K was reported as EARNED income under a W-2, you may qualify for the Earned Income Credit.

Also, whatever you paid for medical care including insurance premiums may be deductible.

Scott:

For a couple filing jointly, their joint standard deduction is $11,400, well in excess of the $10,000 in earned income, so itemized deductions are not an issue here.

The $10K is not enough to trigger taxability on the Social Security disability benefits.

Hi ATE,

That's why I said MIGHT be deductible. The thing is the way I read it, the OP said; "In 2009 we paid out about $10,000.00 for her". I took this to means what they PAID in premiums, not what their total income was.

Noted.