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rbkoprowski
Level 1

HCTC entry of COBRA insurance premiums on returns

I qualify for the HCTC credit for my COBRA medical insurance premiums, on the federal return do I include the premiums in the medical insurance premium entry or just on the specific form 8885? For the NJ state return, do I use the full COBRA premium for the medical expense or the value after it is reduced by 72.5%?

7 Replies
BillM223
Expert Alumni

HCTC entry of COBRA insurance premiums on returns

You can deduct any after-tax amounts that you made for the health insurance.

 

However, the credit complicates the issue a bit.

 

Of course, you cannot claim any amounts that were paid on your behalf - see the instructions for lines 2 and 3 on the 8885.

 

You also cannot claim the amount equal to the HCTC tax credit than you received (line 5, form 8885). So, generally, you can deduct on Schedule A only the amount on line 4 (8885) minus the amount on line 5 (8885).

 

The New Jersey situation is different in that any pre-tax health insurance premiums (i.e., paid by your employer, if any - I know you are on COBRA) are not pre-tax in New Jersey, so they can be added to the deduction in NJ. 

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rbkoprowski
Level 1

HCTC entry of COBRA insurance premiums on returns

Thanks!

I understand this to mean I cannot claim the full COBRA payment on my federal return in the section for medical insurance premiums in schedule A, only the amount not covered by the HCTC credit.

 

I still have one question not clearly answered....for NJ state return...do I claim the full COBRA costs or the cost reduced by the HCTC credit? Since COBRA was all after tax I am not sure what you meant.

ReneeM7122
Level 8

HCTC entry of COBRA insurance premiums on returns

Yes, you can claim the full COBRA costs in NJ.

@rbkoprowski

egavron
New Member

HCTC entry of COBRA insurance premiums on returns

Can i claim hctc on my taxes if i pay for private  health insurance?

DaveF1006
Expert Alumni

HCTC entry of COBRA insurance premiums on returns

Yes, you can claim the HCTC on your taxes per this IRS link. This includes premiums for your Cobra insurance. To claim:

  1. Log in or open Turbo Tax
  2. Go to federal>deductions and Credits>show more
  3. Health Coverage Tax Credit>start

 

 

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egavron
New Member

HCTC entry of COBRA insurance premiums on returns

Thanks Dave, But it is not a cob ra it is private insurance. does that make a difference?

 

eileen 

npierson7
Level 1

HCTC entry of COBRA insurance premiums on returns

No, it doesn't make a difference, you can claim the credit in the same way for a private health insurance. 

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