Newbie question here. I did seach and could not find the information I am looking for. I am still working and 3 years away from retirement. My employer pays health care insurance premium and these are pre-tax deductions. Income form (for wages) does not have a place to fill this info. Due to this, my gross income amount is larger than the actual. It affects MAGI (higher value) value. I can enter this as an expense either in healthcare or Miscellaneous section. But, that does not give correct gross income and MAGI. Appreciate any help or pointers for this. Thanks!
@kzfuh5gp4 The Build > Expenses > Healthcare page allows you to specify healthcare premiums that are paid with pre-tax dollars.
Stuart
I have already mentioned about this in my original post.Is it a bug in the process? I doubt it. Income from wages should have an option for this. I have to enter less income (reduced by healthcare premiums) in order to get correct MAGI. I do not think it is correct approach.
This is a good question. I replied to your Pralana Online feedback about this which you can see under menu item More > Feedback.
Until July, Pralana Online used the "% insurance premiums paid with pre-tax $" on the Healthcare Costs page to calculate a reduction to taxable income which was shown on Form 1040 Schedule 1. I removed that in July 2025 under the presumption that the amount was coming from pre-tax funds for which a tax deduction had already been taken and thus to avoid double-dipping. Based on your feedback, it seems I need to revisit that decision.
Or, more generally, add a new "Other pre-tax payroll deductions" on the Employment Income page and remove those from taxable wages. But since no one has requested the need for "Other pre-tax payroll deductions" other than healthcare premiums, perhaps I should just roll-back the July change.
I would appreciate thoughts on this.
[moving this thread to the Pralana Online section]
But since no one has requested the need for "Other pre-tax payroll deductions" other than healthcare premiums, perhaps I should just roll-back the July change.
It's an extremely minor point, but I also pay for parking as a pre-tax deduction, so the more general treatment would be (very slightly) preferable. But just rolling back the July change would be welcome.
