Health Care

Health Care

How do health care reform and taxes connect? The Affordable Care Act is single largest change to the tax code in two decades. Find help navigating the complexities of the new health care legislation, Medicare, Medicaid and other medical deductions.

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Pioneer
Posts: 2
Registered: ‎12-01-2016
Accepted Solution

Can I recover unclaimed subsidies from previous years?

I have been paying my health insurance premiums out of pocket for the last several years, since my employer health plans are too expensive if I want to cover my whole family (I waived employer health coverage). I recently found out that I would have been eligible for subsidies or premium tax credits. Is there any way I can get a refund or claim those potential subsidies from previous years? I have just recently applied at healthcare.gov because my grandfathered plan with Humana is ending on 12/31/2016. Thanks for any info.

Tax Pro
Posts: 5,715
Registered: ‎02-23-2016

Re: Can I recover unclaimed subsidies from previous years?

Hi Refresca,

 

Welcome to the community.

 

Health insurance is one of my areas of expertise and I'll be glad to assist you.

 

Unfortunately you cannot go back and claim any premium tax credit because you must have insurance through the marketplace in order to be eligible for the PTC, however you may be able to claim a deduction on your tax return.

 

As an employee you can deduct health insurance premiums paid out-of-pocket in the medical expenses section of Schedule A.  Keep in mind the (1) the total of your medical expenses in excess of 10% of your adjusted gross income is the deductible amount, and (2) you must have more in total allowable itemized deductions then the amount of your standard deduction in order to itemize deductions on Schedule A.  The standard deduction is $6,300 for single taxpayers, $9,300 for heads of household, and $12,600 for married couples filing jointly for 2016.

 

If deducting the premiums on Schedule A would make a positive difference in your refund then you can file an amended return (Form 1040X) for an additional refund for 2013, 2014, and 2015 and claim your premiums.

 

For your 2017 tax return, if you're accepted into marketplace insurance, you will be eligible for the premium tax credit.  Be sure to estimate your income as accurately as possible when you apply so that you don't end up having to repay any premium tax credit due to underestimated income.

 

I hope this helps you out.

 

Louis,

Senior Tax Advisor (Tampa, FL)

Pioneer
Posts: 2
Registered: ‎12-01-2016

Re: Can I recover unclaimed subsidies from previous years?

Thank you! That is kind of what I thought. I have deducted my premiums in past years if I itemized. So I think I am good. Just wishing I would have signed up for Obamacare earlier but I was just scared and didn't understand what the deal was.

Tax Pro
Posts: 5,715
Registered: ‎02-23-2016

Re: Can I recover unclaimed subsidies from previous years?

You're quite welcome.