Everything you pay to an insurance company is a premium. The insurance company doesn't have to pass on the MCCA cost to you, but it chooses to do so. You pay a PREMIUM and you get unlimited MEDICAL. The very definitions of words make it obvious this is deductible in that section. There are statutory fees for non-medical items, and because the state has an unbalanced budget. This amount is $31 to date, which is NOT deductible. Additionally, the costs exceeding $161 (as of 2018) for the MCCA assessment (they will always charge more for administrative costs) are not clearly allowed or disallowed, except for the medical portion of the PIP, which is clearly allowed. Typically more than 95% of the PIP is eligible, assuming it is a separate line item from the MCAA, although most will say 80%. Taking the full deduction might be uncommon, and you might find yourself in a letter writing war with a revenue agent from the Treasury as smart as Todd, all in an effort to try and save an extra $6. Regardless, it's pretty clearly allowed and the negative consequences for taking a good-faith position amounting to less than a $10 difference are next to nil. I'm a lawyer by the way. Accounting types are always trying to avoid audits--tax preparers typically are willing to defend you in an audit because they will get you substantially less of a refund than you should get (which ensures you won't get audited), and of course they charge you for it. None of this is advice, do what you will at your own peril. Have a lawyer do your taxes. It might be cheaper in the long-run than using Turbo-tax.
