Question on Self Employment and Health Insurance

[CindyWI]

For 2018 I was self employed and also accepted a full time W2 position in Dec 17 2018. I had marketplace health insurance I kept one month for Jan 2019 because I had to wait before I could be eligible for the new employer insurance. I received a 1095A for January 2019.

I still run my business as a side business, making 6,000 for 2019 and having business expenses.  On TurboTax I put in the 1095A amount which reduces my refund unless I was self employed.

Wondering if I check the self employed box or pay the subsidy back since I held the W2 position for Jan 2019?  Can I also be considered self employed with the side business (about 10% or less of main income) although I also had the W2 position?

Thank you!

[AmeliesUncle]

Yes, you can check the box.

Because you were not yet eligible for employer insurance, you qualify for the Self Employed Health Insurance deduction for January.  That gives you bit of a tax deduction, plus it increases the Premium Tax Credit you may receive from the 1095-A.

[BillM223 · Accepted solution]

"Because you were on yet eligible for employer insurance" - I assume that there is a typo here - "Because you were not yet eligible for employer insurance"

Yes, you may qualify for the self-employed health insurance deduction for January.

However, it's counter-intuitive, but the requirement to repay (or not) the premium tax credit that was advanced is based on your annual income, not your monthly income. So if your income increased beyond 401% of the federal poverty level for your family size, you will have to pay back all premium tax credit that was advanced (if any).

The good news is that any premium tax credit that has to be repaid should automatically be added to line 16 on Schedule 1 (1040) as that self-employed health insurance deduction (do check).

[AmeliesUncle]

Thanks for catching my typo!  😁   (I'll edit my post to fix it).

[CindyWI]

Thank you for your prompt answer!