Denied employer insurance for marketplace instead

No, she can't take the deduction because she declined her employer coverage. If you made any substantial changes during the year, such as higher income, that affects your PTC.

Self-employed health insurance deduction

• To get this deduction, your Schedule C must show a net profit.
• The deduction amount generally can't exceed your net profit amount.
• If you (or your spouse if filing jointly) were eligible to participate in an employer's health plan during any given month—even if you declined the coverage—the premium you paid for that month can't be claimed under this deduction.
• Health insurance premiums you paid for your child, even if you aren't claiming them as a dependent, are eligible for this deduction as long as your child was age 26 or younger at the end of 2021.
• The self-employed health insurance deduction shows up on Schedule 1, line 17.

For the Premium Tax Credit, you first need to determine if her employer insurance qualifies as "affordable" or not.  The program should have some 'learn more' links in the 1095-A section that will help you with that.

Thank you for the responses,

I was not including her medical insurance as part of Schedule C but rather in the box for personal deductions since she received a 1095-A.  I have spoken with Healhcare.gov in the past and basically couldn't determine exactly what qualified as "affordable" since a low monthly premium but outrageous deductible and little to no prescription coverage was not a option worth taking.  The only thing they could tell me is that we would not qualify for premium tax credits which was already the case.

If you just want to claim the insurance on Schedule A, that's fine.  You just can't take the SE Health insurance deduction. You will need to determine how much you paid as opposed to what the PTC paid.