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Health Insurance Premiums and Household Income
Some qualified paid health insurance premiums may be deducted from income when calculating the homestead property tax and other credits allowed on the Michigan income tax return.
Pre-Tax Deduction — An amount excluded from income tax. Pre-tax deductions reduce your taxable income. They are deducted from your income before taxes, so you are not taxed on that money.
Post-Tax Deduction — An amount deducted after the tax is deducted. Post-tax deductions do not reduce your federal, State and Medicare tax liability. They are deducted from your income after taxes, so you are taxed on that money.
Total Household Resources — Beginning in 2012, household income has been replaced by total household resources. Total household resources includes all income received by all household members during the year, including income that might be exempt from federal adjusted gross income. Net losses from business activity may not be used to reduce total household resources. For a listing of income sources to include in total household resources, view Income and Deductible Items .
Household Income — For 2011 and prior years, household income includes all income received by all household members during the year, including income that might be exempt from federal adjusted gross income. For a listing of income sources to include in household income, view Income and Deductible Items .
Post-tax premiums paid for any of the following types of health insurance plans may be deducted to compute applicable credits:
Post-tax Medicare premiums that are paid out of your pocket (not deducted from your Social Security or pension) may be deducted to compute applicable credits. This applies to the following types of coverage:
Premiums paid for the following types of plans may not be deducted except to the extent deducted to arrive at adjusted gross income (AGI):
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