Actual 2016 income was greater than estimate causing ACA subsidy to be retracted. Can I now deduct full medical insurance premiums?

Received medical insurance subsidy because of our estimated 2016 income.  Actual income was large to cause the subsidy to be voided which meant we had to pay it back.  When entering information in Turbo Tax, I said we received the subsidy and it went to the proper area to get the information and said not to enter premiums we paid under medical expenses.  After looking at our income Turbo Tax said it was enough to void the subsidy, but it didn't say if we could then add medical premiums to medical expenses.  It appears to me we got a double hit, removal of subsidy and not being able to claim medical premiums as a medical expense.  Can I now enter full premium cost including the amount of the subsidy because it was taken back?

mollyr-
New Member

Deductions & credits

Did you ever get a complete answer to this? My situation happened with SS back pay and we went over the poverty guidelines. We have to repay it all. Can I deduct those premiuns that I ga evto pay back?

Deductions & credits

Yes, when repaying Premium Tax Credit on 2018 Form 8962 line 29, you can deduct as medical expenses that amount. See <a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/4264925-can-i-deduct-10-000-for-insurance-premiums-i-must-pay-back...>
AmandaR1
New Member

Deductions & credits

If you aren't getting a tax subsidy, you can enter your premiums paid for the medical expenses deduction. However, most people don't get a deduction for medical expenses, which include insurance costs, because they're only deducted as part of the itemized deductions and the total amount is first limited by 10% of your Adjusted Gross Income (AGI - a subtotal on your return). 

You only take the itemized deductions when the total is greater than your standard deduction ($6,300-$12,600 depending on filing status). So be sure to enter all of your deductions and credits, if your medical costs exceed 10% of your AGI. To enter: Federal Takes >>> Deductions & Credits >>> Medical

You can find your AGI by using forms mode and looking at line 37 of form 1040. See instructions here: https://ttlc.intuit.com/replies/3339204

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