Yes. If you repay any portion of the premium tax credit, you can include it in your medical expenses for the same year when itemizing deductions. IRS Publication 502 on Medical and Dental Expenses provides more details on this.
New Jersey State Return: NJ does allow you to deduct medical insurance premiums, but the process is a bit different. On the NJ medical expenses screen, there’s a separate box for medical insurance premiums included in NJ wages but not in federal wages. If your repayment qualifies, it may be deductible under NJ’s rules.
TurboTax handles state and federal deductions differently. It's worth checking again to see if the repayment is automatically considered or if you need to enter it manually.
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