BillM223
Expert Alumni

Deductions & credits

You can deduct any after-tax amounts that you made for the health insurance.

 

However, the credit complicates the issue a bit.

 

Of course, you cannot claim any amounts that were paid on your behalf - see the instructions for lines 2 and 3 on the 8885.

 

You also cannot claim the amount equal to the HCTC tax credit than you received (line 5, form 8885). So, generally, you can deduct on Schedule A only the amount on line 4 (8885) minus the amount on line 5 (8885).

 

The New Jersey situation is different in that any pre-tax health insurance premiums (i.e., paid by your employer, if any - I know you are on COBRA) are not pre-tax in New Jersey, so they can be added to the deduction in NJ. 

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