Can I use the Premium Tax Credit repayment amount when calculating itemized medical expsense?

[blesna1]

I had $15,000 in medical costs from last year, which included ~$300/month in ACA marketplace monthly premium payments that was offset by a "subsidy". 

Now I'm finding, that because I underestimated my income on the ACA application, the IRS is taking back a lump sum from me for those subsidies, which is costing me about $9000 in my 1040 taxes due payment.

Question: because my monthly premium was actually $750 higher than I expressed in my itemized deductions ($9000/12), can I add that $9000 to my medical costs in 1040 Schedule A? If not, why not, since the monthly premiums were actually $1050/month, and not $300?

[VolvoGirl · Accepted solution]

Check and see if it automatically added it to medical deductions on Schedule A.  

If you went to an exchange for Health Insurance, and had to pay back some of the subsidy, part of the adjustment will flow to Schedule A.

[blesna1]

@VolvoGirl - Thanks very much for your reply.

I think you're absolutely correct. I came up with about $8500 in medical expenses, and my Schedule A is actually showing about $15,300. So it looks like TT added about $6800 of the $9000 to it.  Any idea why it wouldn't add the full amount shown on line 29 of Form 8962 (Premium Tax Credit)?

Thanks for verifying this.

[CesarJ]

Your deductible medical expenses are limited by 7.5% of your Adjusted Gross Income (AGI).

To calculate the amount, follow these steps:

1. Find your AGI on Line 11 of Form 1040.
2. Determine 7.5% of your AGI.
3. Subtract this calculated 7.5% from your total medical expenses of $9,000.
4. The result should be the $6,800 reported on your Schedule A.

@blesna1 

[blesna1]

Ahh, got it. Thank you, @CesarJ