Learning, Sharing, and Teaching > Taxes

Writing off out-of-pocket med expenses when covered by co-pay assistance?

(1/1)

monstermonster:
Alright, I have a specific question that I haven't been able to get a straight answer to.

My income is ˜$26,000-$32,000 for this tax year (give or take, small biz unpredictability), about half my income is self-employed and half is W-2. Because I am self-employed my monthly premium (no subsidy) of $231 is fully deductible. It is an ACA compliant plan through the exchange.

I'm on a medication that costs $3000 per month.

My out of pocket maximum is $7,500 per year and my deductible is $6800. I hit that out of pocket maximum in March each year because of the cost of my drugs.

However, the majority of that cost is covered by a direct-from-the-drug-company "co-pay assistance" program, which from my insurance's view, is me paying for my drug. The drug company then reimburses me.

I pay the $3000 for 2.5 months of the year, and get reimbursed through the co-pay assistance program except for a $5 copay. After I hit my OOP max, the insurance company covers my drug costs in full (and all other medical) for the other 9 months of the year.

Question: Because I do pay this drug cost out of pocket and then am reimbursed (via my drug company) - can I count the cost as medical expenses since it's >9% of my income? I suspect not because then I would need to count the reimbursement as income, but it recently occured to me it may be possible.

Also, yes, I know America's medical system is fucked.

Proud Foot:
From IRS Pub.502

--- Quote ---You must reduce your total medical expenses for the year by all reimbursements for medical expenses that you receive from insurance or other sources during the year. This includes payments from Medicare.

--- End quote ---

To me that reads as you would only be able to count your net $5 copay as a medical expense

ixtap:
As a general rule, you cannot deduct any expenses which are reimbursed.

Navigation

[0] Message Index