How to handle health insurance premiums reimbursed from Sheltered Employee Retiree Medical Account

[LillySam]

I get reimbursements for my social security Part B and Part D payments from a Sheltered Employee Retiree Medical Account.  Do I show that as income or do I not list the Part B and Part D payments listed on the SSA-1099?  If income, where do I show it.

[JohnB5677]

SERMA is treated by the IRS like a Health Reimbursement Arrangement (HRA) and is not considered taxable income to the retiree; therefore, no W2 or 1099 is issued to the retiree for the year(s) in which SERMA funds are used.

[LillySam]

When TurboTax Premier asks one to enter what is shown in various boxes on an SSA-1099, one enters the amount of Part B and Part D.  I do not know if TurboTax keeps them in the "background".  When it gets to deductions and medical insurance, I understand from your answer I do not put Part B and Part D amounts on that part of the deductions.  Will TurboTax "forget" that I entered the amount on SSA-1099?

[ThomasM125]

You should leave the medicare deductions off of the SSA-1099 entry. TurboTax will automatically pick them up as deductible medical insurance payments to be entered on schedule A for your itemized deductions.

Since they were reimbursed, they are not deductible.

However, most people don't itemize any more and even if they do, usually their medical insurance premiums are not enough to be deductible. So, it probably doesn't matter, but better to be safe than sorry.