refundable credit

monkeymead — Sun, 08 May 2022 21:02:39 GMT

I live in NY and pay around 20,000 for cobra, would cobra be considered a refundable credit when I am collecting ssdi of about $32,000

Re: refundable credit

xmasbaby0 — Sun, 08 May 2022 21:17:02 GMT

Medical expenses are an itemized deduction--not a refundable credit. If you paid tax and can itemize deductions you can enter your COBRA premiums as a medical expense. If you did not pay any tax on your income then itemizing deductions will have no effect.

If you receive Social Security benefits, your Medicare is deducted from your SS. When you enter the SSA1099 for your Social Security, the amount paid for Medicare flows automatically to the medical expense section of the software, so do not enter it again.

MEDICAL EXPENSES

The medical expense deduction has to meet a rather large threshold before it can affect your return. The amount of medical (including dental, vision, etc.) expenses that will count toward itemization is the amount that is OVER 7.5% of your adjusted gross income. You should only enter the amount that you paid in 2021—do not include any amounts that were covered by insurance or that are still outstanding. Of course, your medical expenses plus your other itemized deductions still have to exceed your standard deduction before you will see a difference in your tax due or refund.

To enter your medical expenses go to Federal>Deductions and Credits>Medical>Medical Expenses

2021 STANDARD DEDUCTION AMOUNTS

SINGLE $12,550 (65 or older + $1700)

MARRIED FILING SEPARATELY $12,550 (65 or older + $1350)

MARRIED FILING JOINTLY $25,100 (65 or older + $1350 per spouse)

HEAD OF HOUSEHOLD $18,800 (65 or older +$1700)

Legally Blind + $1350

topic refundable credit in State tax filing

refundable credit

Re: refundable credit