Can I take both self-employed health insurance deduction and PTC for the same premiums?

Forum|Forum|5 years ago
October 23, 2020
1 reply
32 views

I have 100% owned S.corp and have been taking self -employed health insurance deduction on schedule 1. The health insurance is purchased through marketplace, which I get 1095 A for PTC.

My income for this year is very low, so it looks like I can have the maximum PTC.

I tried on turbotax and it actually allowed me to take both.

Can I take both deduction and PTC? Thanks!

Critter-3

Level 15

Now reading the question again ... you did not mention if you were taking a paycheck and issuing yourself a W-2 at the end of the year as you must do as an S-Corp owner who works the business. Not taking a wage is the fastest way for an S-corp to be audited . See the info here for the health insurance FAQs...

https://www.irs.gov/businesses/small-businesses-self-employed/s-corporation-compensation-and-medical-insurance-issues

mini 11Author

Level 4

Yes, I have been taking wages and issuing W2 and adding premium payment on Box1 on W2.

I don't understand what you mean "NOT on the same dollars"

For instance, I paid $12000 for health insurance and then I reported the amount on box 14 other. So this amount $12000 can not be changed. I put all numbers from 1095 A, then PTC is calculated automatically. Therefore, it seems impossible to claim the difference of SEHI and PTC for SEHI deduction.

Or am I not understanding this at all?

Thank you for your kind advice!