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Half of Americans Believe This Falsehood About Their Insurance Half of Americans Believe This Falsehood About Their Insurance Not understanding some basic rules can land you in hot water with the IRS. Photo by fizkes / Shutterstock.com Half of American adults mistakenly believe they can write off their insurance premiums when they file a tax return, according to a recent ValuePenguin survey. The notion that you can deduct home, health, auto or life insurance premiums is wishful thinking for most people. But 49% of Americans do not realize this, the survey found. Those who are most likely to be mistaken about the deductibility of insurance premiums are men and people with high incomes, according to ValuePenguin. As a group, baby boomers are least likely to hold such a misunderstanding.

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