2009 Wisconsin Tax Benefits for Medical Care Insurance

Certain persons may claim a subtraction on their 2009 Wisconsin income tax returns for the amount paid for medical care insurance.

"Medical care insurance" means a medical care insurance policy that covers the person, his or her spouse, and dependents and that provides surgical, medical, hospital, major medical, or other health service coverage.

A person who is employed and whose employer does not pay any part of the cost of the employee's medical care insurance may subtract 100% of the amount paid for the insurance.

A person who is employed and whose employer pays any amount toward the cost of the employee's medical care insurance may subtract 10% of the amount that person paid for medical care insurance in 2009. This percentage was scheduled to increase to 25% for 2009. However, the phase-in of the deductible percentage has been delayed. The percentage will increase to 25% for 2011, 45% for 2012, and 100% for 2013 and thereafter.

A person who is not self-employed and who has no employer may claim a subtraction for 66.7% of the amount paid for medical care insurance in 2009. The increase to 100% has been delayed until 2011.

Self-employed persons may also claim a Wisconsin subtraction for up to 100% of the amount paid for their medical care insurance. The Wisconsin subtraction for medical care insurance is limited to the net earnings from the trade or business taxable to Wisconsin.

See the Wisconsin income tax form instructions for further information.

Page last updated September 28, 2009