Do I use the total amount charged for medical expenses or the amount allowed by the insurance?

[vpolenick]

On the EOB from my insurance there is the total charge, insurance discount, amount not allowed, amount allowed, copay, deductible, what my plan pays and my coinsurance.  Which amount do I use in turbotax for the medical expense?

[xmasbaby0]

You only use the amount that YOU paid.  Not the amount paid by insurance.

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 2018—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

2018 Standard Deductions:

Single   $12,000  (+ $1600 65 or older)

Married Filing Separately    $12,000  (+ $1300 65 or older)

Married Filing Jointly  $24,000  (+ $1300 each spouse 65 or older)

Head of Household  $18,000  (+ $1600 65 or older)

[vpolenick]

On the worksheet 13a shows insurance reimbursements and 13b shows HSA disbursements.  In previous years I never included HSA paid expenses or those reimbursed by insurance but this year my HSA disbursement is counted against my medical expenses that I paid.  It looked like this year I needed to include a total medical cost and those from the insurance so the numbers would work out on the worksheet. The reason for the effort is that even if I don't itemize on the federal return, I can on my state return so I have to go through the schedule A anyway.

[xmasbaby0]

<a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/2895072-can-i-deduct-medical-costs-paid-through-my-hsa-or-msa">htt...>

[vpolenick]

Thank you.  Whew! For a minute I thought I was going to have to totally change my medical expense accounting system.  

[xmasbaby0]

You read the link, right?  You did enter your SA1099?

[vpolenick]

Yes I did.  I just didn't include the HSA amounts in my medical expenses so that when turbotax deducted my HSA disbursements it came out to negative which wouldn't have helped me at all with my state return itemizing.