topic TT deducts my ACA credit repayment twice on my Alabama return - both as a federal tax, and as an itemized medical expense. Is this correct? in State tax filing

TT deducts my ACA credit repayment twice on my Alabama return - both as a federal tax, and as an itemized medical expense. Is this correct?

yy5gw3cv28r — Mon, 23 Feb 2026 13:25:49 GMT

TT calculates the repayment and correctly adds it to my federal itemized medical expenses. It also correctly includes the repayment in the total federal tax. This federal tax is then correctly deducted from my income on my Alabama state return. But then TT (incorrectly, I think) adds the repayment to my medical expenses for state itemized deductions. So the repayment ends up being deducted twice on my state return - once as a fed tax and once as an itemized deduction. Is this an error? I don't know how to keep TT from doing this.

Re: TT deducts my ACA credit repayment twice on my Alabama return - both as a federal tax, and as...

JohnW152 — Mon, 06 Feb 2023 18:59:20 GMT

The computation in TurboTax is correct.

Generally speaking, you can itemize the same expenses on your Alabama return as on your federal return.

Any amount of advance payments for the premium tax credit that you had to repay can be included in medical expenses on your federal return, and the same rule applies to your state return.

See Premium Tax Credit in the Publication 502, Medical and Dental Expenses for more information.

Re: TT deducts my ACA credit repayment twice on my Alabama return - both as a federal tax, and as...

yy5gw3cv28r — Mon, 06 Feb 2023 20:07:40 GMT

Thanks for taking the time to read my question and type your reply. This “problem” has concerned me for several years now. I’ve read the rules for my state (Alabama) and, just as you said, it allows the same medical deductions as the IRS. But that means I’m deducting the premium credit repayment twice on my state return - once as a tax and once as a medical expense. As much as I would like that to be correct, it’s difficult to believe that’s Alabama’s intention. Also, I ran my same info through TaxAct and it does not add the credit repayment to my medical expenses for the state. For fed, it does, but not for state. That seems more correct. I would love to follow TT and get the extra deduction. I wonder if TT will stand by me if I get audited? Or will TT simply claim it’s not a math or calculation error so they have no liability?

Re: TT deducts my ACA credit repayment twice on my Alabama return - both as a federal tax, and as...

MichelleLO — Thu, 09 Feb 2023 19:30:48 GMT

Alabama state forms are not available yet. You can check the status of the forms in the below link.

Forms Availability

Please also see the below TurboTax Audit Support Guarantee should your return get audited.

What is the TurboTax Audit Support Guarantee?