SEHI and marketplace insurance

[TaxGuyBill]

Having said all that, I have to disagree with kathyc2 on the following:

"The payback of 1,500 counts as her SEHI deduction." No, it does not. Payback of APTC is like paying back loan principal, it is not an expense.

LOL. I think you are both sort-of saying the same thing, but from slightly different angles.

Kathy is correct that the SEHI deduction is $1500 (the net amount paid after everything is done). Robert is correct that it is a loan.

If the total cost was $10,000, the Advance credits (loan) was $10,000, the repayment is $1,500, then the SEHI deduction is $1500. The deductible amount is the original cost of $10,000, minus the 'final' credit received (Advance credit/loan minus repayment of Advance payment/loan).

[FEDUKE404]

My sincerest apologies to kathyc2 for apparently asking the same question three times.

I never expected the quality / volume of responses posted to my initial query. All are quite helpful, and I will carefully review each response for guidance in the resolution of this issue.

It is somewhat interesting that there appears to be some. . .differences of opinion. . .between some of the posters here. At least I have some comfort as to why I also was a bit confused / uninformed.

My software provider has recently sent me extremely detailed instructions as to how to get the proper numbers to the correct locations on the tax return. They also addressed the iterations issues.

Thanks to ALL for taking the time to respond. Your efforts are greatly appreciated!

Here's hoping each of you had a productive tax season!

FE