Medicare Part A reimbursement

[gabbybug]

Received a Medicare Part A reimbursement as I was paying part A out of pocket and was actually entitled to Part A on my spouses work history when she turned 62 and I was already 65.  It was reported on a SSA 1099 as income.  I this taxable? if so, can I claim a credit for the full amount as it is a reimbursement

[DaveF1006]

Yes, if it was reported on Box 5 of a SSA-1099, it could be potentially taxable depending on your other sources you reported.. 

To claim, you need to report the SSA-1099 statements as recorded on the form. If the repayments are not recorded on your tax forms issued by the Social Security Administration, you must have proof either in the forms of canceled checks or a payment receipt. Here is how to report.

1. Log into turbo tax 
2. Go to federal>wages and income>all income
3. Retirement plans and Social Security>show more 
4. Social Security (SSA-1099, RRB-1099) Start
5. Here you will enter your SSA-1099. 

Now you will need to report your repayment as a Claim of Right Repayment. You can either claim as an itemized deduction, provided you have enough deductions to itemize, or take a credit for the tax assessed from social security income.  Please read this article by Isabella G for detailed instructions on how to enter this in Turbo Tax.

[gabbybug]

Misunderstanding.  The is not a repayment.  It is a reimbursement of Part A premiums that were previously paid. I never received SS benefits.  I paid Part A premiums out of pocket and was reimbursed $10,020 which is being shown on the SSA 1099 form in box 5.

[Cynthiad66]

Form 1099-SSA Instructions say "Do not use the Social Security Benefits Worksheet in these instructions if any of the following applies."  This statement applies to you, "None of your benefits are taxable for 2020"  see page 27 of the following link  Form 1099-SSA Instructions

Box 5 of Form 1099-SSA is Net Benefits.  See if there is an explanation of benefits in box 3.  If it distinctly shows it as reimbursement or you are confident that it is just a reimbursement of of your money paid for insurance prior to being covered under your spouse's plan then you just do not enter it on the return

OR

If you prefer to show it because you received the Form 1099SSA then you can follow the instructions below.

Enter the 1099-SSA as is presented as income then do an offsetting entry to minus it out of income with an explanation.

Below are instructions for removing the income from the return with an explanation.

You can show a negative number in Line 21 with the caption, “Medicare Premiums Reimbursement Adj.”  The negative number on Line 21 will adjust the income of the reported rebate.  

You can enter a negative income adjustment with the following menu path:

1. Federal Taxes
2. Wages & Income
3. Less Common Income (image attached)
4. Miscellaneous Income
5. Start
6. Other Reportable Income
7. Start
8. Other Taxable Income
9. Description = “Medicare Premiums Reimbursement Adj”
10. Amount = -$xxx

TurboTax will transfer this to your Form 1040, Line 21, Page 1.