Question

In 2018, I overpaid $8784 in ACA credits. Should I show them on my 2019 returns as a medical premium or a "other" medical expense?

Forum|Forum|6 years ago
January 20, 2020
1 reply
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In other words, I they owed $8784 on my 2018 taxes due to my income being too high to allow for the credit taken.

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Employee

No. If you were allowed advance premium credits in 2018 that you had to repay back via your 2018 tax return you filed in 2019, those premiums would be 2018 medical expenses and should not be on your 2019 return.

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S

STURG1Author

For clarity.... I was provided ACA credits in 2018. In preparing my 2018 tax returns it was determined that my credits were not allowed due to income restrictions. Those credits were paid the first week in April 2019 with the filing of my 2019 tax return. My 2019 return was completed by Jackson Hewitt. They inquired with their IRS contacts, and suggested, the expenses were for medical and should be allowed for 2019. My question was should they be included in the medical total or separated on the line defined a "other" and briefly explained?

B

bwergeles

Yes, any amount of advance payments of the premium tax credit that you had to pay back can be included in medical expenses in the same year as you received the credit. Therefore, you will need to amend your 2018 to include it as a medical expense for that year. Please click on this link to IRS Publication 502 for more information.

TurboTax can help you amend your 2018 return. Please click here for instructions.