I used ACA in 2018 and received a subsidy based on incorrect information received via phone call with the Health Marketplace regarding what qualified as income. This resulted in me having to payback my entire subsidy of 10K.

My accountant said that I could not use as a medical deduction as it was considered a 'loan'. TRUE or FALSE? If true, can I use this as a medical deduction on my 2019 tax return OR do I need to go back and amend my 2018 return?

Filing status is single, age 62. Income in 2018 consisted of SS Survivor benefits, taking out of my retirement plan, and selling inherited stocks. Can someone clarify this for me? Thank you!


1 Answer 1


I believe you would have to take the deduction in the 2018 tax year. If you look at Example 1 in the "Premium Tax Credit" section of Publication 502, a person who got the subsidy on health insurance premiums in 2019, who had to pay back some of it on their 2019 tax return (filed in 2020), would be treated as having paid health insurance premiums in 2019 (the year they got the subsidy, not the year they made the repayment).

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