Retiree reimbursenet of medical and dental insurance premiums

Forum|Forum|3 years ago
March 24, 2023
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I am retired. My former employer reimburses me for my medical and dental insurance premiums. They gave me a 1099 Misc with the amount listed in Box 6. Is this taxable? If nontaxable, how do I indicate on my tax return?

PattiF

This income is not taxable. You will enter this as income and then subtract the same amount back so there is no taxable amount.

For this two-step process, first, enter the 1099-MISC as Other Income:

Follow these steps in TurboTax Online:

In the Federal section, under Your income and expenses
Scroll to Other Common Income
Select Form 1099-MISC
Follow the Prompts and enter amount in Box 3, Continue
Describe the reason for this 1099-MISC box
Do any of these uncommon situations apply? check last box
Select No, it didn't involve work like my main job on Did the Retiree medical insurance premiums involve work that's like your main job?
Answer How often did you get income...Although you may receive this income every year, say that you only receive the 1099-MISC only in 2022, not in previous years and not in 2023, you will then have the screen where you can say that it did not involve an intent to earn money.
Select No on Did the retiree medical insurance premiums involve an intent to earn money?

Then follow the same steps and use a negative number to zero this out.

From the IRS:

Rev. Rul 62-199 states that "amounts paid by the company under the plan as its share of the cost of providing hospital, medical and surgical insurance coverage for the retired employee are excludable from gross income for purposes of Sec. 106 of the IRC.

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tuteloAuthor

For clarification, my 1099-MISC has the amount in Box 6, not box 3

tmunoz

Yes, the description for Box 6, on Form 1099-MISC, is Medical and health care payments, so your employer put it in the proper field. The directions above work for Box 6 as well as some of the other fields, where we need to show the form in the return but not have the income included as taxable. It is truly a Miscellaneous Form 1099.