Self employed health insurance through Healthcare.gov

[madkiwis]

I got my insurance through Healthcare.gov last year but was not qualified to receive a subsidy. My AGI was way over. No biggie, nice problem to have.

I entered everything in TT (Deluxe, desktop edition) including putting my health insurance premiums in the appropriate box under Business expenses. When I completed the return it showed the entire total of $15,720 deducted in Schedule 1 line 16.

I went through my folder of tax stuff one last time and realized I had received a 1095-A with zero subsidies and a total of $14,981.52 in column A. I knew I needed to complete that part of the tax return.

After I did that line 16 of Schedule 1 had an adjustment of $30,696! Well, that was wrong so I removed the $15,720 from my business expenses.

But now the deduction is only $14,976. I can't find out how that is arrived at because there is a non-helpful note at the bottom of  the Health & LTC Worksheet- "A self-employed health insurance adjustment of $14976.00 from premiums paid through an exchange is included as an adjustment to income but does not appear on these worksheets."

I don't get how this happens. If I don't enter anything from the 1095-A I get a $15,720 deduction, but it is reduced even though I got nothing and don't qualify for anything from Obamacare.

It's $744 in added income, $164 in additional taxes, doesn't feel right when I shouldn't have to pay it. Same thing happened in 2019, I even upgraded to TT Home and Business hoping it would have a way to fix it but that didn't help. Not making the same mistake this year.

Is there a workaround?

[GeorgeDenseff]

Contact customer service and get someone to analyze a diagnostic copy of your tax return.  

https://support.turbotax.intuit.com/contact/

[Mike9241]

I entered everything in TT (Deluxe, desktop edition) including putting my health insurance premiums in the appropriate box under Business expenses. When I completed the return it showed the entire total of $15,720 deducted in Schedule 1 line 16. if so this is what you told TT you paid for health insurance.  and thus would show up on schedule 1 line 16

I went through my folder of tax stuff one last time and realized I had received a 1095-A with zero subsidies and a total of $14,981.52 in column A. I knew I needed to complete that part of the tax return. This is what healthcare.gov says you paid for health insurance for 2020. monthly this is $1,248.46. TT would round to $1,248 for 12 months so schedule 1 line 16 would be $14,976.  so which is it?  did you pay $15,720 or the healthcare amount?  note that the healthcare amount is the premiums for 2020 even though it's likely you paid 12/19 in 1/20 and 12/20 in 1/21. did you have other health insurance such as dental insurance, long-term care insurance that wouldn't be included in the healthcare amount but would be deductible as SE health Insurance ?

I would say this is an issue you should be able to resolve without TT help.

[Critter-3]

Also review the form 8962  & line 2 of the Sch 2 ... what may have happened is you now  got some of the PTC now which reduced the SEHI deduction. 

[madkiwis]

Mike9241,

You're onto it. I'd forgotten about the timing aspect.

I decided to stop going through Healthcare.gov in November, so I signed up with my current insurance company but directly with them. We also decided to try upgrading to the "Silver" level, so our first month's premium was $1,937 and it was paid in December.

Even so, the amount I wrote the check to the insurance company each month I was in the Obamacare regime it was for $1,253.00, not $1,248.46 (per the 1095A).

So I still don't get it- even if I was on the same plan the amount shown for my premium was not what I was paying. Do I go back to Healthcare.org and get my 1095A corrected? Claim it as additional premiums on my Schedule C?

But thanks for pointing me in the right direction.