topic Medical reimbursement in Deductions & credits

Medical reimbursement

oklund — Mon, 03 Feb 2020 20:36:29 GMT

Our health insurance is with Kaiser Senior Advantage. Our Medicare payments our deducted form our Social Security checks.

However, these payment are reimbursed to us in our pension checks. However, it is not showing as income on our 1099's.

Do we show this as a medical reimbursement, since we deduct our Social Security premiums?

Re: Medical reimbursement

DavidD66 — Mon, 03 Feb 2020 21:04:31 GMT

You do not need to report the reimbursements as income, as long as you reduce your medical expense deduction by the amount of the reimbursement. In TurboTax, you would list the reimbursement payments as medical reimbursement when entering medical expenses.

Re: Medical reimbursement

kenhs31 — Thu, 13 Feb 2020 16:57:28 GMT

I itemized my medical expenses in 2017, are reimbursements received in 2019 taxable?

Re: Medical reimbursement

JohnW222 — Thu, 13 Feb 2020 17:26:46 GMT

Since you received a reimbursement in 2019 for medical expenses you paid in 2017, you'd need to include either the reimbursement amount, or the amount of the medical deduction you claimed in 2017 -- whichever amount is less -- on your 2019 taxes.

Please see the TurboTax Help article “Do I need to report medical expense reimbursements?” for more information.

Re: Medical reimbursement

EM1-CE — Wed, 02 Feb 2022 01:19:10 GMT

Thank you DavidD66! I've been searching all over for this answer for before completing our TY2021 TurboTax inputs (married filing jointly). My wife and I each have our Medicare Part B premiums deducted from our individual US Civil Service Retirement System annuities. These premiums, plus those for our Kaiser-Parmanente (KP) Senior Advantage 2 health insurance, do show up correctly in block #5 of each of our 1099Rs. KP, however, returned most of the premiums in the form of direct deposits back to our bank account. Based on your 2020 answer, I believe that I should enter the total of these returned premium amounts on line 13a of the "Medical Expenses Worksheet" which will, in turn, reduce the amount line 1 of Schedule A . Is that correct? (Since we will end up with the standard deduction, I'm only concerned because the numbers will carry over into our California return for which itemized deductions are still the best option.)

Re: Medical reimbursement

DawnC — Wed, 02 Feb 2022 01:42:02 GMT

Yes, that is correct. By putting the returned premiums on line 13a, you are reducing your deduction (even though you are not itemizing on your federal return). And that is how it should be entered considering you are going to use the data for your CA state return. You are also correct that it doesn't factor in on a federal return that is taking the standard deduction, but it will ensure your CA deduction is not overstated.

Do I need to report medical expense reimbursements? @EM1-CE

Re: Medical reimbursement

EM1-CE — Wed, 02 Feb 2022 01:48:02 GMT

Thank you DawnC!