Author Topic: Can someone help me out here?  (Read 1480 times)

mtn

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Can someone help me out here?
« on: March 21, 2016, 02:35:56 PM »
I'm using TaxAct, and trying to figure this out. Some background that is necessary for this:

My wife and I were married in September. We are filing jointly. 
My wife had employer sponsored healthcare from January 2015 until May when she changed jobs. 
She had Marketplace insurance from May until September. 
She was on my insurance in September.
For most of the year, she was on a prescription medication that was not covered by insurance--it has been the same medication, and was covered by at least 1 of the 3 insurances, but was not covered by at least 1 of the 3 as well.

Can we claim this on our taxes? What documentation do we need? Also, can we claim the Marketplace premiums that she paid? The other insurance premiums would have been incorporated to her W2's.

seattlecyclone

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Re: Can someone help me out here?
« Reply #1 on: March 21, 2016, 02:43:43 PM »
Medical expenses (including insurance premiums paid out of pocket instead of payroll deduction) can be deducted as an itemized deduction on Schedule A. However only the amount of these expenses that exceeds 10% of your income can be deducted. It's unlikely that your prescription plus a couple of months' insurance coverage would exceed this amount.

mtn

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Re: Can someone help me out here?
« Reply #2 on: March 21, 2016, 02:58:12 PM »
I assume it is for gross income? Using liberal numbers for napkin calculations it was shockingly close, but it wasn't 10%. Thanks!

Thanks for the help!

seattlecyclone

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Re: Can someone help me out here?
« Reply #3 on: March 21, 2016, 03:15:37 PM »
Yes, 10% of AGI. See https://www.irs.gov/taxtopics/tc502.html for more information.

 

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