I had posted about this previously under the heading of 1040 re self employed health insurance. I had some replies but unfortunately nothing that worked. I am an LLC - K1 partner and had insurance through the marketplace. My premium was input on my K1 - box 13 code M as $8293. These premiums were computed correctly on all necessary forms except form 1040 schedule 1 line 17). Line 17 shows $14,252. This is $5959.00 over! I then discovered something I wasn't aware of before when I was checking form 7206 – the Self Employed Health Insurance Deduction. It also has $8293 on line 14 as the allowed deduction. BUT at the very bottom of this form in very small print it says
"A self-employed health insurance adjustment of $5959.00 from premiums paid through an exchange is included as an adjustment to income but does not appear on these worksheets."
So this adjustment was added to my $8923. Of course I have no way of knowing how that happened since it’s not shown in the worksheets.
The IRS states about form 7206 - How to figure the deduction. Generally, you can use the worksheet in the Form 1040 instructions to figure your deduction. However, if any of the following apply, you must use Form 7206. • You had more than one source of income subject to self-employment tax. • You file Form 2555. • You are using amounts paid for qualified long-term care insurance to figure the deduction.
None of these apply to me. I thought I would delete form 7206 and I tried. But the program doesn’t seem to allow you to do that.
I really need some help please.
