Medical insurance deduction- pre or post tax?

[tuffbrk]

What is the name of your state (only U.S. law)? NJ

I have been incredibly fortunate in that my employer has paid for full medical insurance without deducting an employee contribution. I just received an email today that indicates that a mere pittance of $25 will be deducted per pay period, pre-tax, as the employee contribution to medical health insurance coverage. This is for myself and one dependent.

My question is - does it matter that the deduction is pre-tax? I'm paid 26 times a year so it only calculates to $650.00 annually (can you imagine?! With the cost of healthcare today?) but I didn't think that you could deduct your portion of the premium from your above the line taxable income?

I'm just a bit confused and recognize that it's not a large amount... I just would like to better understand. I googled it but don't understand what I'm reading (the cafeteria tax?) so thought I would request assistance here.

Thanks.

 

[ecmst12]

If it is a section 125 employer-sponsored group plan, premiums are paid pre tax I believe for both the employer and the employee portions. Other types of plans can NOT be paid pre-tax. And if it was any other type of plan, you would NOT be able to deduct post-tax premium payments unless ALL your medical expenses for the year exceeded 7.5% of your AGI. So it's a special benefit for that specific type of plan, I think it was created as an incentive for employers to offer insurance.

 

[tuffbrk]

Hmmm. I see. Thanks so much for the info!