Because it appears that you deducted the premium payments on Schedule A of your 2020 Form 1040, the MLR rebate that you received in 2021, is taxable to the extent that you received a tax benefit from the deduction, whether the rebate is received as a cash payment or applied as a reduction in the amount of premiums due for 2021. As such, you should report this income as a taxable refund on Schedule 1, line 1. Your Schedule 1, line 1 entry will transfer to your Form 1040, line 10.
Follow these steps to enter your taxable MLR into TurboTax.
Under Wages & Income, scroll down to the section, Less Common Income. The last item on that list is Miscellaneous Income, select it.
- On the next screen, select Reimbursed deductions from prior year.
- Answer the questions that appear on the pages that follow.
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