He enters the $1,000 he paid for Medicare and supplemental insurance on line 3 instead of line 1 because he was eligible for Medicare at the time he paid the premiums. Include medical expenses paid by cash or check in the year in which you paid the expenses, not the year when the services were provided (if the. Insurance premiums paid with after-tax dollars and unreimbursed medical expenses can be entered on federal Schedule A Itemized Deductions. When completing his Unreimbursed Health Care Expenses Worksheet, David enters the $600 in ACA premiums on line 1. This change is in effect for tax years 2017 through 2020. His premiums from July 1 through the end of the year totaled $1,000. He also purchased additional supplemental health insurance. He canceled his insurance through the ACA and instead began to pay Medicare Part B premiums. David paid $100 per month in premiums, totaling $600, for insurance he obtained under the Affordable Care Act (ACA).ĭavid became eligible for Medicare on July 1. However, out-of-pocket healthcare insurance premiums paid by the taxpayer during the part of the year the taxpayer was not eligible for Medicare and/or an employer-paid healthcare plan are fully deductible on line 1 of the Unreimbursed Health Care Expenses Worksheet.Įxample: From January 1 through June 30, David was not eligible for Medicare. These out-of-pocket premiums should be deducted on line 3 of the Unreimbursed Health Care Expenses Worksheet. Taxpayers can deduct on Schedule A (Form 1040) the amount of their medical and dental expenses that exceeds 7.5 of their AGI (adjusted. Generally, out-of-pocket medical insurance premiums paid by the taxpayer during the part of the year the taxpayer was eligible are deductible to the extent they exceed 7.5% of the taxpayer’s federal adjusted gross income. Qualified medical expenses that were paid during the year for the taxpayer, their spouse and their dependents are deductible on Schedule A to the extent that they were not reimbursed.
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