Repayment of Premium Tax Credit

[SKLBI]

On Business Income and Expense page, for Self Empl Health Insurance, there is a value of $9633 in the summary which I did not directly enter.  On the next page, it says "we have deducted $547 of allowable health ins attributable to Schedule C.   The $547 is dental and health premiums that I paid.

I have a 1095-A with a Col. A total of $9084.57.  Col C $8179.38.

I saw in Turbo Tax that I have to repay $8184 (it definitely shows 8179 for 1095 entry but repayment screen added $5).   My income was higher than anticipated due to a K-1 Estate check I received.

1.  I think the repayment should be treated as a medical expense on federal (if it weren't for the std deduction) and on state and hopefully reduce the tax I owe.    Would this show on my 2024 taxes or would I enter it next year?  What form can I see it on?

2.  None of the numbers add to the $9633 value shown.  9084 + 527 gets close at 9611.

Does the program work correctly?   I entered medical expenses in the personal section but the std. deduction was better.  Does that value come into play here? It still doesn't make the math work.

3. Do I need to enter the repayment as a medical expense for NJ State return?  What form can I look at to verify it was used?

Thank you.

Sharon

[SKLBI]

Update from original poster- I understand what value Turbo Tax is displaying in the summary table for Less-common Business Situations, Self Employed Health Insurance.  It is the 1095-A Monthly Enrollment Premiums (Col A) plus the value I entered for additional dental only premium.

My remaining question is: Do I enter the repayment of premium tax credit as a medical expense in the Personal Section of my return for Federal or for NJ State, or is this taken into consideration automatically by TurboTax?

Thank you.

Sharon

[DaveF1006]

 Yes. If you repay any portion of the premium tax credit, you can include it in your medical expenses for the same year when itemizing deductions. IRS Publication 502 on Medical and Dental Expenses provides more details on this.

New Jersey State Return: NJ does allow you to deduct medical insurance premiums, but the process is a bit different. On the NJ medical expenses screen, there’s a separate box for medical insurance premiums included in NJ wages but not in federal wages. If your repayment qualifies, it may be deductible under NJ’s rules.

TurboTax handles state and federal deductions differently. It's worth checking again to see if the repayment is automatically considered or if you need to enter it manually.

[SKLBI]

For Federal, I see the repayment of tax credit on Schedule 1 as an adjustment to income for self-employed health insurance deduction.     Since under Personal Medical Expense, it says not to enter health insurance premiums if self-employed, I don't think I enter it again.   (I did enter it to see what would happen and the standard deduction was still used so it didn't matter if I am wrong). 

For NJ state, I see it was automatically entered as a medical expense on 1040, line 31.

Thank you.