I have taken this deduction in the past and the insurance companies talk about it because this part of the policy is for hospitalization. In the past some of the people that I came in contact with were taking this deduction. Lately I have talked to a few tax return preparers and they have not heard about it. Maybe my interpretation is wrong but I was wondering how other preparers in the community think about this issue. I have done some research and it seems to go both ways. What are the thoughts of you others in the tax preparer community?
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I don't know about other states, but from what I understand about my State (Minnesota), Personal Injury Protection (PIP) covers more than just medical expenses. It also covers things for everybody in the vehicle, including those who do not qualify for a medical deduction on your tax return.
So unless you can figure out the cost for ONLY medical insurance that would ONLY cover you, your spouse and your children under age 26, I don't see it as being deductible.
IMHO, unless medical coverage is a separate component that can be isolated and not an integral part of the auto insurance policy (e.g. as a rider), it could be difficult to take a position that any portion of the premium paid could be deductible as such.
Still an AllStar