[royandjeanne]

When I retired from a municipal fire department I was able to buy my unused sick time, vacation time, and compensation time to purchase paid-up health insurance under the City Blue Cross/Blue Shield Plan. I was able to purchase $70,000 of pre-paid paid up insurance wich was paid directly to the City and they pay the monthly premiums until the $70,000 is exhausted. They predict that to be approximately 10 years. The problem is the total $70,000 is added to my total income for the year which puts me in a much higher tax bracket. My question is, since I have paid the total amount for the pre-paid insurance this year, can I deduct the total amount this year as a medical expense or does it have to be amortized?

[AtlantaTaxExpert]

You should be able to deduct the cost all in one year. You are getting taxed on the money all in one year, so you can claim the deduction all in one year.