Medical Premium Reimbursements

Forum|Forum|4 years ago
March 3, 2022
1 reply
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I am retired and my company reimburses me for 75% of my medical premiums. I received a 1095A for the premiums, which was entered into Turbo Tax, which then put that information into the medical expense worksheet, which feeds the itemized deduction worksheet. I do not receive a 1099 for the premium reimbursement from my company. While I read that medical premium reimbursements are not taxable, it doesn't seem right to get the 100% deduction for paying for the premium when, I am being reimbursed for 75% of it. Does the 75% amount get entered on the medical expense worksheet as a reimbursement (assume line 13B) or, is the reimbursement amount not entered on my taxes?

HelenC12

Level 15

Yes, the 75% medical reimbursement from your employer gets entered on your taxes if you itemize your deductions. Please see the following:

If you itemize, you can either subtract the reimbursement from the expenses you originally paid and enter the new expense amount, or enter it after you've finished entering all of your medical expenses. Either way, the reimbursement simply reduces your medical expense deduction by that amount.
If you take the standard deduction, you don't have to enter the reimbursement.

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john4kathy1Author

Level 2

Hello,

When I take the standard deduction, I still receive a large tax credit from the "Premium Tax Credit" form 8962. This form uses the 1099A information entered to calculate the credit. There is no option to enter any HRA reimbursement on this form. Is this now correct?

mgwh686

Level 2

I found the paragraph below on Healthcare.gov which covers my situation as I was reimbursed for all my premiums. TurboTax needs to look at this issue as some people will be receiving larger returns than entitled. Also, TurboTax states that the IRS will not process your return without the 1095-A information which is contrary to what is stated on Healthcare.gov.

If you paid full price and are sure you don't qualify for a premium tax credit

You don’t have to fill out or include Form 8962, Premium Tax Credit, when you file your federal taxes.
Keep your Form 1095-A with your other tax records

I have the same situation. I get a reimbursement from my retiree benefits in an HRA reimbursement scheme, but my insurance is from the Marketplace, and I am not allowed to get a Premium Tax Credit. When I enter the 1095-A into TurboTax, it wants to give me a huge reimbursement, which I am not entitled to.

To clarify the solution provided above, all we have to do is simply go into the TurboTax forms and delete the Form 8962, but make sure we have the 1095-A remaining in our tax return?

Thanks. And TurboTax, please pay attention to fixing this!! I could have very easily made an error by receiving an additional $20K+ refund that I was not entitled to, by inadvertently double-dipping in the HRA and the PTC!!! We expect better expertise from you.