What could be considered a supporting document when submitting form 8885. Would pay statements that show my premiums work?

[PatriciaV]

It depends. If you file Form 8885 (Health Care Tax Credit), you must provide verifiable proof for each month you are claiming the credit that you paid premiums for the qualified health insurance coverage by attaching the documents listed below. No documents are required if you file Form 8885 only to elect the HCTC for months you participated in the advance monthly payment program.

Per the IRS:

For all health plans you must include all of the following documents.

1. An official letter reflecting that you were an eligible individual for the months you claimed:

   • For trade certified individuals demonstrating TAA, ATAA, or RTAA eligibility—A copy of the official letter from the Department of Labor, your state workforce agency, or employment office stating you are eligible for trade adjustment benefits.

   • For PBGC eligibility—A copy of the official letter or a copy of your 2017 Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc., from the PBGC showing you received a benefit paid by the PBGC.

2. A copy of your health insurance bills or COBRA payment coupons for each month you are claiming the credit*. The bills must have:

   1. Your name (or name of the policy holder),

   2. The name of your health plan,

   3. Your monthly premium amount,

   4. Dates of coverage, and

   5. Your health plan identification number(s).

   *If your health plan doesn’t provide members with an insurance bill or COBRA payment coupon, you must provide health plan enrollment documents or an official letter from your health plan that has the required information listed under items 2a through 2e earlier. If your monthly premium includes amounts that don’t count towards the HCTC, such as dental or vision coverage or coverage for family members who aren’t eligible for the HCTC, your documentation must also specify those ineligible amounts.

3. Proof of payment for each month you are claiming the credit such as:**

   1. Canceled checks (copy of front and back),

   2. Bank statements,

   3. Credit card statements, or

   4. Money orders.

   **Your proof of payment must indicate the amount paid and to whom it was paid. If you don’t have one of these types of proof of payment, contact your health plan for a record of your payment(s).

[maryk908]

For item 3 (proof of payment), do you need to include the entire credit card statement or just the page that has the charge?

[VictoriaD75]

As long as the information you are providing the IRS contains the necessary information as stated in the original post, you do not need to maintain the entire statement. However, be sure that the pages you use for substantiation also verify how the payment was made, such as the credit card account number. 

This is the IRS statement on burden of proof:

The responsibility to prove entries, deductions, and statements made on your tax returns is known as the burden of proof. You must be able to prove (substantiate) certain elements of expenses to deduct them. Generally, taxpayers meet their burden of proof by having the information and receipts (where needed) for the expenses. You should keep adequate records to prove your expenses or have sufficient evidence that will support your own statement. You generally must have documentary evidence, such as receipts, canceled checks, or bills, to support your expenses.