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Level 2
posted Mar 1, 2021 8:39:13 PM

I am a graduate student. My healthcare premiums are paid for by a scholarship. I always report it as taxable income. Is this still correct?

I receive a scholarship and fellowship totaling ~$78k. Of that, $25k is tuition and req. fees (qualified), $8k is healthcare, and $45k is stipend for living expenses.

I always report the tuition and fees (25k) as qualified and the healthcare   stipend (53k) as taxable  (non-qualified).

1) Has anything changed that make healthcare premiums qualified (note my university does not require us to buy their insurance)

2) If they are non-qualified, can I report the cost of the premiums when I itemize my deductions (my wife and I file jointly and we do itemize).

0 2 731
2 Replies
Level 2
Mar 1, 2021 8:53:39 PM

Am I correct to say:

 

Premiums can only be deducted if they plus medical expenses exceed 7.5% of your AGI?

 

 

Level 15
Mar 2, 2021 4:37:46 AM

Q. Premiums can only be deducted if they plus medical expenses exceed 7.5% of your AGI?

A. Yes and then only if your itemized deductions total more than your standard deduction. 

 

Q. 1) Has anything changed that make healthcare premiums qualified (note my university does not require us to buy their insurance)

A. No, It's still taxable. 

Q.  If they are non-qualified, can I report the cost of the premiums when I itemize my deductions (my wife and I file jointly and we do itemize).

A.  Yes.