Another Premium tax question

Forum|Forum|7 years ago
April 5, 2019
1 reply
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In 2018 I paid $11,000 in monthly premiums to Anthem BlyeCross, and I received a Premium Tax Credit of $25,000. So the cost of helth insurance for myself and my wife was $35,000. (These is in round figures, but very close) In 2018 I sold a house and invested to proceeds, and at the end of the year my income was above the limit for relief. I now have to repay the $25,000. So in effect the government made me a loan of $25,000 which I will be paying back in full.

However, after repaying the $25,000 my health insurance will have cost me $35,000. The question is can I deduct the full $35,000 as a health care expense?

Thanks for enlightenment

Best answer by PaulaM

See 'premium tax credit' in this IRS link. You'll have to enter it in the Medical expense section with your other medical expenses. TurboTax will not pick up the amount automatically if I'm understanding you correctly. There is no category for it, enter it in other with a description.

PaulaM

Employee

Yes, you can enter as a medical expense the full $35,000 premium payment. But the total amount of medical expenses are still subject to 7.5% of your adjusted gross income so the total amount may not be fully deductible.

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rhino_dAuthor

Employee

Thanks for your response. I realize that there is the 7.5%, but neither TuboTax, nor H&R Block, see the $25K I refunded to the government as a "Medical" expense. Is there any way to ask the IRS for a ruling?

David