Let me clarify my answer from before (yes, that was me you were quoting):
The two statements that I quoted from the state of Georgia ("to the extent the deduction has not been included in federal adjusted income" AND "the expenses have not been provided from a health reimbursement arrangement and have not been included in itemized deductions") are joined by an "and".
This means that both statements have to be true in order to deduct these health insurance premiums on the Georgia return.
You need to restate your statement above "1) you didn't deduct these expenses as an itemized deduction and 2) your payments didn't come from a health reimbursement account" to be "these deductions are not included in federal adjusted income" and "the expenses was not from an health reimbursement account nor an itemized deduction." By leaving off the first phrase "to the extent the deduction has not been included in federal adjusted income", you have missed the very item that disqualifies these health insurance premiums from being deducted in Georgia.
Simply put, your health insurance premiums are normally listed on your W-2 in box 12 with a code of DD. This amount is removed from Wages - thus this amount has been included in determining federal adjusted gross income. And since federal income flows to Georgia, deducting these premiums in Georgia would be a case of double-dipping.
