Submitted By: someone
Answered: April 29, 2020 11:00 pm

How do I report a Medical Loss Ratio payment from my health care provider?

It depends on whether you itemized medical deductions for the year in which you pay the premiums on the policy you purchased on the individual market. If you took the standard deduction, you don’t report the payment. If you itemized, you report the payment as “other income” to the extent you received a tax benefit from it in the prior year. Similarly for those who are self-employed and deducted the premiums from gross income, the payment must be reported as “other income” in the year it’s received.

Tax Glossary

Tax-sheltered annuity

A type of retirement annuity offered to employees of charitable organizations and educational systems, generally funded by employee salary-reduction contributions.

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