As confirmed by Shall I report Member Rewards incentive payments from my health insurance for choosing a certain med..., I realize that "Medical Rewards" incentive payments from health insurance [for things like learning about the "Medical Rewards" program, getting a (paid-for-by-insurance) annual physical exam, etc.] *are* taxable as "Other Income".
However, I imagine that funds made available (by debit card, 1 time) by the insurance company to help pay for groceries, utilities, and transportation are *not* taxable as income.
Is that correct?
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My thoughts are they are non taxable unless a 1099 is issued for the distribution. I believe it could be considered as a rebate(incentives ) of the insurance premiums which would make it non taxable but you also have to reduce your deductible medical expenses by that same amount on the Sch A.
My thoughts are they are non taxable unless a 1099 is issued for the distribution. I believe it could be considered as a rebate(incentives ) of the insurance premiums which would make it non taxable but you also have to reduce your deductible medical expenses by that same amount on the Sch A.
Thanks @Critter-3.
I now realize that I should have mentioned:
1. This wasn't an incentive for doing anything. It was in 2022, and I think was intended as Covid and/or inflation relief
2. It was on a Medicare Advantage plan
3. Schedule A doesn't apply, because I'm using the standard deduction
So your initial thoughts ("non taxable unless a 1099 is issued for the distribution") seem appropriate.
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