self-employed health insurance deduction

Forum|Forum|5 months ago
March 16, 2026
6 replies
197 views

I was laid off from my job w/ health insurance mid-year. I got health insurance from the Marketplace. While job hunting, I'm supplementing my income via Rover and my Etsy shop. I did receive PTC which according to form 1095-A, I underestimated my income and now I need to repay some of the tax credits which is fine. To take advantage of the health insurance deduction, do I just enter the total amount I paid for health insurance on form 7206? Actually, the difference between column A and column C on form 1095-A, part III is off by $1 - does it matter? Thanks.

DavidD66

Level 15

You can claim a deduction for Self-employed health insurance for the premiums you paid (which should be column A less column C - the rounding error doesn't matter). If you have to repay a portion of the Premium Tax Credit (Form 8962 line 29), you can include that amount in your self-employed health insurance deduction. If you receive additional Premium Tax Credit on your tax return (Form 8962 line 26) you have to deduct that amount.

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safetyprincessAuthor

Level 2

Suppose I paid $400 in monthly health insurance premiums. On form 8962, it determines that I got too much credit per month, say $50/month more than I should have received. Would my net monthly premium paid be $350(400-50) then? I would enter $350x 6 months= $2100 on form 7206 and on schedule 1, line 17? This is my takeaway from what I've read. Thanks.

VolvoGirl

Level 15

I think Turbo Tax calculates it out for you.

Self-employed health insurance deduction goes on Form 1040 Schedule 1 line 17 then to 1040 line 10, as long as the expense is not greater than your net self-employment income. If it does exceed your net self-employment income it gets split automatically. An amount equal to your net self-employment income goes on Form 1040 Schedule 1 line 17 and the remainder gets added in to medical expenses on Schedule A.

BUT do not enter any Health Care Marketplace insurance you bought. If you enter the 1095-A and select the "Self-employed and bought a Marketplace plan" box, it will automatically include those premiums in the SE Health Insurance section. So you shouldn't enter it again on schedule C.