In "Enter Insurance Premiums" under Deductible, do I enter total insurance premiums if I must pay back the subsidized amount?

[daiann22]

I was unemployed for several months and had a low annual income, so I was enrolled in a healthcare program that subsidized part of my insurance premiums. Let's say the total monthly premium was $400/month, and I only had to pay $100/month (or $1200 total for 12 months). The government paid the remaining $300/month premium.

However, I was later employed and my income went above the maximum threshold that qualified me for the subsidy. Upon entering my 1095-A information under "Health Insurance," I discovered I had to pay it all back. Thus, I owed a total of $3,600 or ($300 x 12 months).

Back to the Deduction section, next to "Medical Insurance Premiums," do I enter the full premium amount of $4,800 ($400 x 12 months) or only the amount I paid in 2017 of $1,200 ($100 x 12 months)?

I have attached a screenshot.

[CarolC · Accepted solution]

Enter the full $4,800 premium amount.  You can deduct both your health insurance premiums and the repayment amount you paid.  The IRS states, any repayment of the Advance Premium Tax Credit is considered to be a premium payment in the same tax year.

There are repayment limitations.  So if your income is below 400% of the federal poverty level, your repayment amount will be reduced.  See attachments below.  If your repayment is capped, then your medical expense deduction will need to be reduced to the actual repayment amount applied on your return.

Click this IRS link Publication 502, Medical and Dental Expenses (Including the Health Coverage Tax Credit) for more information.  Scroll down to Premium Tax Credit.