Medical expense - marketplace premium

[pattiea]

When TT showsmy marketplace premium subsidy has to be repaid do I then enter the premium cost as a medical expense?   What about the portion I paid on top of the subsidy ?  Do I manually enter it as an expense or does TT calculate it from the 1095?

[Bsch4477]

You would include premiums you paid in medical expenses as an itemized deduction.  Only an amount of total medical expenses greater than 7.5% of your AGI  can be deducted. 

[pattiea]

I’m including a marketplace premium I paid?  Purchasing it through the marketplace is what is confusing me.

[Bsch4477]

Yes. 

[pattiea]

In Turbo Tax under their question “How much did you spend on insurance premiums” they say “don’t include premiums for:… An Affordable Care Act Plan”.   Is this because they calculate what you paid personally when you enter the 1095?  I guess this is a Turbo Tax questions more than a tax question.  Yes, I know I can deduct it.  But in TT do I just enter the 1095 info or do I add the premium expense itself under the insurance premium section?

[Bsch4477]

Answer as requested. When you come to itemized medical deductions >insurance see if TurboTax already carried over what you paid in premiums. 

[pattiea]

Thank you. 

[MonikaK1]

Yes, any amount of advance payments of the premium tax credit that you did have to pay back can be included in deductible medical expenses. You can manually add the amount you paid back.

See IRS Publication 502 for more information.

[pattiea]

So Turbo Tax doesnt’t include it as an expense automatically?

[MonikaK1]

Correct, TurboTax doesn't automatically include the amount of Premium Tax Credit paid as a medical expense for Schedule A.

You don't include the premium that you pay for your plan as a medical expense (since it could be eligible for the credit), but you can enter the amount of any Premium Tax Credit that you later repaid.

See this TurboTax article for more information about the Premium Tax Credit.