Question

Cobra Payment reimbursed by Employer after proof of payment was provided

Forum|Forum|4 years ago
February 17, 2022
1 reply
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I retired early from a senior position and my employer agreed to pay my Cobra payments plus 30% (working we had other benefits for long term care and life) for 18 months until I can get medicare. For the medical, each month I send them proof of payment (check copy and coupon) and they reimburse me. I received a 1099 Misc for the entire amount, approximately 12K and I provided them with proof of payments of 10K. How do I enter this in Turbo Tax?

I saw another thread on it that said if proof of payment had to be provided first, it was not taxable and to enter as other income, with it being reported than with a negative. Turbo tax specifically says not to report 1099 Misc in that area, so I wonder how to properly enter it.

TurboTax Home & Biz Windows

AmyC

Employee

You have two parts to entering your situation, first the 1099-MISC and then the subtraction for reimbursement. Follow these steps to enter the 1099-MISC:

Go to Federal
Income
Scroll down to Other Common Income
Select income from 1099-MISC start/ edit/ update
You may need to select edit or add

Enter the 1099-MISC information

Describe the reason retirement benefits
Uncommon situations apply? Select None of these apply
Continue
Did it involve main job, NO - this money was not your job, it was a benefit from a prior job
Continue
How often? Mark got it in 2021 ONLY -yes, you are getting it every year but marking yes will turn the money into business income with self-employment tax.
Continue
Intent to earn money? NO