But why does the IRS have list both the amount paid for medical expenses AND the amount paid for health insurance premiums while unemployed as exceptions that can be claimed on Forum 5329 to avoid the 10 percent additional tax penalty? This is why I'm still confused and can't figure out which exception to claim.
I understand that I can claim the medical expenses both on Schedule A and Form 5329. But the IRS says that more than one exception can be claimed on Forum 5329. If, however, I were to claim Exception 5 (medical expenses) and Exception 7 (health insurance premiums for the unemployed), it seems like that would be double-counting the amount I paid for health premium payments because they would be included in both the total medical expenses on Schedule A (minus 10% of my AGI) and then again under Exception 7 on Form 5329. That's why I can't figure out what amount to claim on Line 2 of Form 5329.
