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New Member
posted Feb 22, 2025 1:40:43 PM

I just added an expense (health insurance) to my business expense and none of the resulting computations changed. Is this a software issue?

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1 Best answer
Level 15
Feb 22, 2025 1:44:35 PM

Was it for your own health ins or for your employees?   

For your own health insurance you need a Net Profit of Schedule C .  And it does not go directly on Schedule C so it won’t reduce your Schedule C profit or the self employment tax.

 

If your health ins exceeds your net self-employment income it gets split. An amount equal to your net self-employment income goes on Form 1040 Schedule 1 line 17 (to 1040 line 10) and the remainder gets added in to medical expenses on Schedule A.

1 Replies
Level 15
Feb 22, 2025 1:44:35 PM

Was it for your own health ins or for your employees?   

For your own health insurance you need a Net Profit of Schedule C .  And it does not go directly on Schedule C so it won’t reduce your Schedule C profit or the self employment tax.

 

If your health ins exceeds your net self-employment income it gets split. An amount equal to your net self-employment income goes on Form 1040 Schedule 1 line 17 (to 1040 line 10) and the remainder gets added in to medical expenses on Schedule A.