High Deductible Health Plan (HDHP) Contributions & State of Georgia Deduction

[todi111]

I am trying to understand the Georgia Deduction for HDHP premiums.  I have an HDHP through my previous employer which I retired from a few years ago.  I have a family HDHP Plan.  I pay monthly premiums for my health plan with after-tax dollars.  I do not itemize on my Federal Tax Returns.  I do not have Medicare.  According to the IRS definition of a qualifying HDHP, a family plan must have a deductible of at least $2,800 and out-of-pocket of $14,000.  My HDHP has a deductible of $3,000 and an out-of-pocket of $5,600 (in-network) and $11,200 (out-of-network).  I believe that I would then qualify for the Georgia HDHP deduction for my after-tax monthly premiums that I paid in 2022.  Can you confirm if I my HDHP is considered qualified by IRS definition and can I deduct my 2022 HDHP premiums on my State of Georgia Tax Return?

Thank you very much!

[AnnetteB6]

Based on the information you shared and the information in IRS Publication 969, your insurance plan does meet the IRS definition of a High Deductible Health Plan (HDHP).  Therefore, as long as you did not deduct the after-tax premiums that you paid for your HDHP as part of your Schedule A Itemized Deductions, then you may deduct the premiums on your Georgia tax return.

[todi111]

Thank you very much for the answer.

One folllow-up question… I want to amend my previous Georgia Tax returns since I was not aware of this deduction until now.  I have met the requirements of an HDHP and paid after-tax premiums since 2018. Can I amend my Georgia tax returns between 2018 and 2021 to take advantage of this deduction?

Thanks in advance. 

[AnnetteB6]

As long as you did not take a Federal deduction for those insurance premiums, you should be able to amend your Georgia returns to claim the deduction.

However, you may only go back for three years to claim an additional refund.  The 2018 tax year is closed.  The 2019 tax year will be closing as of three years from the due date of the return, which was extended to July 15, 2020 due to Covid.  To be sure that it is accepted and processed, you should try to get the 2019 amended return submitted by April 15, 2023.  

@todi111 

[todi111]

Thanks.  Very helpful!