My employer paid part of my ACA premium as a benefit. Does that need to be reported?

[MiriamF · Accepted solution]

This reimbursement is a non-taxable benefit. It can complicate your life, however, if those payments cause your medical expenses to exceed the 10% of AGI threshold for deductible medical expenses, and you are filing Schedule A.

The amount you pay for health insurance is automatically carried over to Schedule A. However, because you didn't pay these premiums yourself, you cannot claim them as a deduction. To delete them from your deductible medical expenses, you can list them as "medical reimbursements."

To do this in TurboTax:

1. Open your tax return.
2. Choose the Federal Taxes tab.
3. Click on Deductions & Credits.
4. Select I'll choose what I work on.
5. Scroll down to Medical.
6. Click through the pages until you come to the page headed Tell us about anything received in medical reimbursements. (see the screenshot below). Enter the amount that your employer paid for your health insurance there.

[macrav]

Okay, thank you so much!  That's what I thought.  I imagine that will also resolve any ACA subsidy issues?

[MiriamF]

Whether you paid the correct amount for your ACA insurance is a separate matter. That is calculated using form 8962. You could either have a refund or owe, depending upon your actual income for the year compared to your earlier estimate when you got the insurance.