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Claiming Income Protection Insurance Premium: Paid 12 months only worked for 10 months

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Hi 

Last year, I was unemployed for 2 months, living off my savings.  I kept paying my Income Protection Insurance premiums.  Now it is tax time I want to know if I can claim the full 12 months of Income Protection Insurance premiums or if I can only claim for the months I earnt income?

 

I am now living off the jobkeeper but assume I can keep claiming the premium.  Is this correct?

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ATO Community Support

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Hi @Sharyn64,

 

You can claim the cost of any premiums or any part of a premium paid under a sickness or accident insurance policy, which is commonly called an income protection policy, to compensate you for loss of income. Any payments received under the policy for loss of income must be included at items 1, 2 or 24 on your tax return.

 

However, a deduction cannot be claimed for an income protection insurance premium where the policy is taken out through your superannuation fund and the insurance premiums are deducted from your super contributions.

 

Hope this helps.

 

 

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Most helpful response

ATO Community Support

Replies 0

Hi @Sharyn64,

 

You can claim the cost of any premiums or any part of a premium paid under a sickness or accident insurance policy, which is commonly called an income protection policy, to compensate you for loss of income. Any payments received under the policy for loss of income must be included at items 1, 2 or 24 on your tax return.

 

However, a deduction cannot be claimed for an income protection insurance premium where the policy is taken out through your superannuation fund and the insurance premiums are deducted from your super contributions.

 

Hope this helps.