Form 7206 Line 9: what is it asking?

[mc510]

I'm amending my 2023 return because I realized that I had neglected to indicate that my ACA medical premiums were deductible from my self-employment income. Federal Review has flagged a missing entry on Form 7206 Line 9, which says "Enter the amount, if any, from Schedule 1 (Form 1040), line 16, self-employed SEP, SIMPLE, and qualified plans, attributable to the same trade or business in which the insurance plan is established." I don't understand what the red text part means. I've got one self-employment business, and my SEP contribution is from its earnings. I purchased the insurance plan from Covered California for my family. I don't understand the "insurance plan is established" stuff.

Even more confusing, I just dug into my 2024 return in which I correctly enter this information the first time. On Form 7206 there is no entry at all on Line 9, and the Federal Review didn't flag anything. I don't even know what is going on here.

[KeshaH]

If you'd like, we can look at your return and see exactly what you see to  help come to a resolution. The return will be scrubbed and won't include any of your personal details.

If you're using TurboTax Online:

Once you're logged in to your account,

- on the left hand panel, click on Tax Tools and then choose Tools

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If you're using TurboTax Desktop:

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Please reply to this message with your token so that we can further assist you. Let us know all other states that are included on the return.

[mc510]

Thanks, I think I can work it out myself if I can just get an explanation for what the text in red means.

[AmyC]

Red means it has been overridden. You can cancel an override. See What do all the different colors in Forms Mode mean?

[mc510]

No no no, I'm referring to the red text in my original question at the top of this discussion.

[Mike9241]

The red text is to alert you. You have an amount on Schedule 1, line 16, for 2023. It's attributable to the same activity for which you are now taking the self-employed health insurance deduction. It needs to be entered on line 9 of the 7206

to explain your self-employment health insurance deduction is limited to your net is after the retirement plan contribution and the retirement pakn deduction is limited to your net SE income after the SE health insurance deduction. in short, the deduction for one may depend on the deduction for the other,