1095-a. Former Employeer Retirement funding

[JoeD05408]

Hi

I received a 1095-a form for 2025 tax year.   My former employer subsidizes my health care costs with a tax free monthly payment.  In researching this on line, there should be a question that asks if my payment is subsidized and there is nothing that does so.  The end result, Turbo Tax is showing a much bigger credit than I am due as a result.

In essence, my cost is 1250 per month,   former employer provides payment of 600 per month.  I did not get a prepayment on the tax credit.

I am using Premier for Mac

[MarilynG1]

When you enter your 1095-A in TurboTax, in Column C enter 600 (the amount you were reimbursed each month) if your form shows $0.

@JoeD05408 

[JoeD05408]

the column C is for monthly advance payment of premium tax credit.  The $600 I received was not an advanced payment of the premium tax credit but a payment from my former employer from a Retirement Reimbursal  Account

[RobertB4444 · Accepted solution]

Medical reimbursements from your employer are tax free and generally do not need to be entered into the tax return.  If you are taking a deduction for medical expenses then you would need to reduce the deduction by the reimbursed amount.

In this case you are receiving a credit for the amount that should have been paid by the government for your marketplace health insurance plan based on your income and the cost of the insurance.  The premium tax credit does not take into consideration how you are paying the premiums that you paid - only that they should have been paid by the government instead of by you.  So the amount you were reimbursed by your employer has no effect on the premium tax credit.

[JoeD05408]

Thanks so much

As I have enough medical deductions to itemize, do I need to do anything to adjust the amount I paid to the insurer based upon the fact the former employer paid a monthly stipend to me?

I am concerned with doing this right!

[MarilynG1]

In the Medical Expenses interview, the very last question asks if you were reimbursed for any of your medical expenses.  Although it says 'by your insurance company' you can enter the amount you received from your employer, effectively reducing your medical expense deduction by this amount.

@JoeD05408