You are reporting it the right way. The IRS does not recognize health insurance costs as education expenses. It is taxable as unearned income to you.
According to the IRS:
“Expenses That
Don't Qualify
Qualified education
expenses don't include amounts paid for:
Insurance;
Medical expenses
(including student health fees);
Room and board;
Transportation; or
Similar personal,
living, or family expenses.
This is true even if
the amount must be paid to the institution as a condition of enrollment or
attendance.”
CLICK
HERE for IRS Pub 970 Education Credits
