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Taxeses
Level 2

Health insurance premium rebate for tax year 2018

In 2019, I received a health insurance premium rebate check (about $150) from the insurance company for tax year 2018. Is this rebate taxable?

Relevant facts:

1. The "Part III, C. Monthly advance payment of premium tax credit" columns on my 1095-A for tax year 2018 are all $0.00.

2. Also, Line 70 on my Schedule 5 (Net premium tax credit. Attach Form 8962) on my 2018 tax return is empty.

1 Best answer

Accepted Solutions
BillM223
Expert Alumni

Health insurance premium rebate for tax year 2018

Based on the information that you have supplied, you did not deduct any health insurance premiums (no Schedule A) nor were they paid with premium tax credits (zero on the 8962).

 

So I would conclude that the refund is not taxable, because you never received a tax advantage for it.

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6 Replies
BillM223
Expert Alumni

Health insurance premium rebate for tax year 2018

Did you deduct this amount as health insurance premiums paid with after tax dollars on Schedule A or as a self-employed health insurance premium (line 16 Schedule 1 (1040))? If not, and you apparently did not receive any PTC, then, no, this is not taxable.

 

If you did deduct this amount somewhere, then you will need to add it as "Other Income" with the explanation that it was the refund of a health insurance premium that was previously deducted.

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Taxeses
Level 2

Health insurance premium rebate for tax year 2018

Hi @BillM223, thank you for your response.

 

- My 2018 tax return does not have a Schedule A. Turbo Tax picked standard deduction for me that year. Line 8 ("Standard deduction or itemized deductions (from Schedule A)") of 1040 is $12,000.
- Also, my Schedule 1 ("Additional Income and Adjustments to Income") from 2018 does not have a Line 16, but it has a Line 16a and it is Reserved and grayed out. However, Line 29 on Schedule 1 is named "Self-employed health insurance deduction", but that one is blank for me.
- I was not self-employed and was a W-2 employee in 2018 along with a few months of unemployment compensation.

 

Would these add up (along with "you apparently did not receive any PTC") to make the rebate not-taxable?

 

When you say "If you did deduct this amount somewhere": is there anywhere else this amount could have been deducted? Also, on 2018 or 2019 return? I received the check in 2019. I must have already submitted 2018 return by then.

 

Thanks in advance for your response.

Taxeses
Level 2

Health insurance premium rebate for tax year 2018

Bump. I would appreciate if @BillM223 or someone else can comment on my last message in this thread.

 

Thanks in advance.

BillM223
Expert Alumni

Health insurance premium rebate for tax year 2018

Based on the information that you have supplied, you did not deduct any health insurance premiums (no Schedule A) nor were they paid with premium tax credits (zero on the 8962).

 

So I would conclude that the refund is not taxable, because you never received a tax advantage for it.

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Taxeses
Level 2

Health insurance premium rebate for tax year 2018

Thank you, @BillM223, for the detailed response. Much appreciated!

BillM223
Expert Alumni

Health insurance premium rebate for tax year 2018

You're welcome, Taxeses, and happy day before tax day!

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