Question

We get insurance through the Marketplace. We also receieve the Premium Tax Credit. Is our remaining premium tax deductible?

Forum|Forum|1 year ago
March 25, 2025
2 replies
0 views

We had a lot of medical expenses last year and are very close to the amount required for us to deduct medical expenses, but we have not factored premiums in yet, and that would put us over the required minimum. Are premiums deductible if we're getting insurance through the Marketplace and taking advantage of the Premium Tax Cut?

If so, will taking that deduction have any affect on the PTC we can receive in the future?

M

Mike9241

having Marketpalce insurance requires you to enter the 1095-A (for form 8962) and file a return even if not otherwise required if any of the following apply to you.
• You are taking the PTC.
• APTC was paid for you or another individual in your tax family.
• APTC was paid for an individual you told the Marketplace
would be in your tax family and neither you nor anyone else
included that individual in a tax family.

DawnC

Yes, TurboTax includes the amount of your premiums when you enter your 1095-A. Where do I enter my 1095-A?

And no, the amount of your medical expenses deduction is not a factor in the Premium Tax Credit. Your household income must be between 100% and 400% of the federal poverty line for your family size to qualify for the credit.

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C

crisponeAuthor

We're just at the very beginning of the deductible calculations. TT is asking us if our medical expenses for 2024 were at least a certain amount. We're just under that amount but if we can include our premiums (the portion we paid), that would put us well over the amount. So, we're trying to see if we should click Yes or No.

DawnC

Click Yes - Don't enter the premiums from your 1095-A there. TurboTax will get those when you enter the form (1095-A). But enter all of your other unreimbursed medical expenses you paid out of pocket for on the following screens.

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