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Tax Court Allows Alimony Deduction for Health Insurance Premiums

Oct. 4, 2021, 9:39 PM

A taxpayer can claim an alimony deduction for health insurance premiums he paid under the terms of a separation agreement, the U.S. Tax Court ruled, disagreeing with the IRS that it counted as a double deduction.

Charles Leyh successfully sued the IRS over the tax treatment of $10,683 in insurance premiums he paid for his then-wife in 2015, after he agreed to cover her health and vision insurance until the divorce was final. On his 2015 tax return, Leyh excluded from gross income the premiums he and his wife received under his employer’s health insurance plan and also ...

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