HCTC entry of COBRA insurance premiums on returns

[rbkoprowski]

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%?

[BillM223]

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. 

[rbkoprowski]

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]

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

@rbkoprowski

[egavron]

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

[DaveF1006]

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

[egavron]

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

eileen 

[npierson7]

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