Individual Income Tax
Medical Care Insurance Subtraction

  1. Can the amount paid by an individual for premiums for Badger Care be used for the subtraction for medical care insurance?
  2. Does the federal premium tax credit affect the Wisconsin subtraction for medical care insurance??

  1. Can the amount paid by an individual for premiums for Badger Care be used for the subtraction for medical care insurance?

    Yes. Wisconsin law provides a subtraction from income for all or a portion of the amount paid for medical care insurance by an individual. "Medical care insurance" is defined as a medical care insurance policy that covers the individual, his or her spouse, and the individual's dependents and provides surgical, medical, hospital, major medical, or other health service coverage. Based on this definition, premiums paid by an individual for Badger Care qualify for the subtraction for medical care insurance.

  2. Does the federal premium tax credit affect the Wisconsin subtraction for medical care insurance?

    Yes. The subtraction for the amount paid for medical care insurance does not include any premium paid with the advance federal premium tax credit. When the federal premium tax credit is reconciled on the federal income tax return for the year, you must also reduce your Wisconsin subtraction for medical care insurance for that same year by the amount of any additional premium tax credit that you were allowed on the federal return. If you were required to repay all or a portion of the advance federal premium tax credit, you may increase your subtraction for medical care insurance by the amount you were required to repay.

FOR MORE INFORMATION PLEASE CONTACT:

WISCONSIN DEPARTMENT OF REVENUE
Customer Service Bureau
PO Box 8949
Madison, WI 53708-8949
Phone: (608) 266-2486
Fax: (608) 267-1030
Email additional questions to DORIncome@revenue.wi.gov

December 9, 2014