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    Jbert's Avatar
    Jbert Posts: 56, Reputation: 1
    Junior Member
    		  
    #1

    Dec 29, 2009, 09:44 PM
    Insurance refund
    I just want to be sure I am not missing something. Our only income is Social Security Disability and what ever money I use from our IRA's for medical insurance for my wife. Her insurance is COBRA until summer of 2010. In 2009 we paid out about $10,000.00 for her. The delima is this money is reported as income but it with the social security is not enough to pay taxes usually.

    Is there any thing we can do to get back some of the insurance money?



    Thanks so much



    Jbert
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Dec 30, 2009, 09:50 AM
    Jbert:

    Maybe. If the $10K was reported as EARNED income under a W-2, you may qualify for the Earned Income Credit.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #3

    Dec 30, 2009, 09:52 AM

    Also, whatever you paid for medical care including insurance premiums may be deductible.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #4

    Dec 30, 2009, 10:05 AM
    Scott:

    For a couple filing jointly, their joint standard deduction is $11,400, well in excess of the $10,000 in earned income, so itemized deductions are not an issue here.

    The $10K is not enough to trigger taxability on the Social Security disability benefits.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #5

    Dec 30, 2009, 12:39 PM

    Hi ATE,

    That's why I said MIGHT be deductible. The thing is the way I read it, the OP said; "In 2009 we paid out about $10,000.00 for her". I took this to means what they PAID in premiums, not what their total income was.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #6

    Dec 31, 2009, 09:47 AM
    Noted.
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