Where do I enter COBRA payments in TurboTax?
Asked by: Elenor Considine | Last update: May 3, 2025Score: 4.6/5 (67 votes)
How to claim COBRA payments on taxes?
There isn't necessarily a “COBRA Tax Deduction”. You can only deduct the amount of COBRA medical expenses on your federal income tax in excess of 7.5% of your Adjusted Gross Income and then only if you itemize deductions.
Do COBRA payments show up on W-2?
In general, each employer providing coverage will have to report the prorated cost on the employee's W-2. If the employee is terminated, the employer can also include the COBRA payment amounts paid by the employee after termination.
Where do I enter payments in TurboTax?
- Open or continue your return.
- Navigate to the estimated tax payments section: ...
- Select Start or Revisit next to the type of estimated tax payment you'd like to enter under Estimated Tax Payments.
- Enter the amount of estimated tax you paid at each of the quarterly due dates.
Are COBRA reimbursement payments taxable?
Answer: Reimbursement for COBRA payments are not taxable to the former employee and should not be reported on a Form 1099, Miscellaneous Information, or a Form W-2, Wage and Tax Statement. This is true regardless of whether the reimbursement is paid by the former employer or the employee's current employer.
Where do I find my Employer ID Number (EIN)? - TurboTax Support Video
Is there a tax form for COBRA payments?
If you had job-based health coverage. Depending on the kind of job-based coverage you had (including COBRA or retiree coverage), you may get one of these from your employer or insurance company: Form 1095-B, Health Coverage. Form 1095-C, Employer-Provided Health Insurance Offer and Coverage.
What is d and dd in box 12?
Code DD is only information to you to tell you how much your employer spend for health coverage - you do nothing with it. Code D is the amount of salary deferrals to a 401(k) plan. You do nothing with than either other than enter it on the W-2 screen in box 12 just like it is on the paper W-2.
What is line 26 on 1040?
Answer: Report all your estimated tax payments on Form 1040, line 26. Also include any overpayment that you elected to credit from your prior year tax return.
Where do I enter payment made with extension on TurboTax?
You can type estimates paid in the search box at the top of your return and click Find and it will give you a link to Jump To the screen where you enter Extension Payments. For 2023 Federal Extension payments should be on schedule 3 line 10. And go to 1040 line 31.
Where do I enter COBRA payments on TurboTax?
Enter your COBRA premiums under Medical insurance premiums.
What is the tax credit for COBRA?
If your coverage is from a former employer, such as COBRA or retiree coverage, you can decline the employer coverage, even if it is affordable and provides minimum value, and may be eligible for the Premium Tax Credit for your Marketplace coverage.
What is box 14 on W-2?
Box 14 of Form W-2 Wage and Tax Statement allows your employer to enter a variety of information. Employers might use abbreviations and codes in Box 14, and you may need to ask your employer to interpret those abbreviations or codes.
Do COBRA payments show up on w2?
If the employer charges a COBRA premium for such coverage, then it must be included in the aggregate reportable cost on the Form W-2.
What is the tax penalty for COBRA?
The minimum tax levied by the IRS for non-compliance discovered after a notice of examination is generally $2,500. The maximum tax for “unintentional failures” is the lesser of 10% of the amount paid during the preceding tax year by the employer for group health plans, or $500,000.
Can you deduct health insurance premiums without itemizing?
Whether you can deduct health insurance premiums from your tax return also depends on a few factors. First, you'll only be able to deduct premiums as medical expenses if you itemize deductions on your tax return, but not if you take the standard deduction. See more details at the bottom of this section.
Where does payment made with extension go on 1040?
Go to the Input Return tab. On the left-side menu, select Payments, Penalties & Extensions. Click on 2024 Estimated Payments. Scroll down to the Paid with Extension (not later than April 15, 2025) section.
How do I file for an extension on my taxes TurboTax?
An extension is requested by filling out Form 4868, which can be mailed to the IRs or e-filed using your TurboTax account. There is no fee to file for an extension, and doing so can save you from a “Failure-to-File” penalty. That penalty is 5% per month, up to 25% of the tax owed.
How to do a payment plan on TurboTax?
If you haven't filed yet, go to File, and on the How do you want to pay your federal taxes? screen, select Request an IRS payment plan. If you already filed, or you can't find this option in TurboTax, you can apply for a payment plan (Form 9465) at the IRS Payment Plans and Installment Agreements website.
What is line 26 on the 1040 Schedule C?
Line 26: Wages—enter total salary and wages paid to employees for the tax year included on Form W-2. Amounts paid to yourself are owner draws and not a deductible expense, but also not included in your income. Line 27a: Other expenses—list any business expenses that you didn't report on Lines 8 through 30.
What is line 27 on 1040?
The Earned Income Credit (EIC) offers qualifying individuals an additional tax credit based on income. Select the box if anyone in your household claimed the Earned Income Credit on your 2022 or 2023 tax return. If you filed a 2022 federal tax return and received the EIC, it is listed on IRS Form 1040—line 27.
What is the tax line 26?
Line 26 – Use Tax. You are required to enter a number on this line. If the amount due is zero, you must check the applicable box to indicate that you either owe no use tax, or you paid your use tax obligation directly to the California Department of Tax and Fee Administration.
Are employer paid cobra premiums taxable?
If the employee receives the funds and can provide supporting documentation of the payment to the insurer, the funds are also nontaxable. If there is no verification that the employee used the funds to pay for the premiums, the amounts are included in wages and are taxable.
Do I have to report box 12 d on my tax return?
Box 12 amounts with the code DD signify the total cost of what you and your employer paid for your employer-sponsored health coverage plan. Code DD amounts are for informational purposes only—they don't affect the numbers in your tax return.
How do I record employer paid health insurance on my W-2?
Sum the “Cost of Employer-Sponsored Medical Care”, “Dental Care”, and “Vision Care” and report in box 12 of the W-2 using code DD. If the employee waived medical, report dental and vision. Consider each month separately to account for any mid-year changes in tier or plan.