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.
Items, such as interest, state and local income and sales taxes, charitable contributions, and medical deductions, claimed on Schedule A of Form 1040. Itemized deductions are subtracted from adjusted gross income to arrive at taxable income. The amount of itemized deductions is also subject to a reduction when adjusted gross income exceeds certain limits.