Hello again, davidsimshomes:
Thank you for your kind words. Yes, the Affordable Care Act (a.k.a. Obamacare) can affect your tax return, where the taxpayer both claims the self-employed health insurance deduction, and is eligible for an ACA health insurance premium credit.
A full discussion of this is topic is beyond the scope of this answer, and the space allowed for doing so (although I do indicate below where you can in fact read such a complete discussion).
The main problem you see is that a taxpayer's ACA premium tax credit (a separate and additional tax benefit, calculated on IRS Form 8962) is based on the amount of your Adjusted Gross Income. However, your Adjusted Gross Income is itself determined, in part, by the amount of your ACA tax credit. Thus, there is a circular reference here, and a significant mathematical issue as a result.
The IRS itself recognized this as one of the inherent flaws (or inconsistencies) in the way that the ACA was written into law, and so in 2014 they issued formal taxpayer guidance on the matter, called Revenue Procedure 2014-41 (or Rev. Proc. 2014-41).
An excellent analysis of all this, as well as a complete answer to the question (with all of the nuances and details) of how the ACA affects the self-employed health deduction, is provided at the following (3) internet links:
<a rel="nofollow" target="_blank" href="
https://www.healthinsurance.org/obamacare/self-employed-health-insurance-deduction/">https://www.hea...>
<a rel="nofollow" target="_blank" href="
https://www.healthinsurance.org/faqs/my-premium-subsidy-is-dependent-on-my-agi-but-im-self-employed-...>
<a rel="nofollow" target="_blank" href="
https://www.irs.gov/pub/irs-drop/rp-14-41.pdf">https://www.irs.gov/pub/irs-drop/rp-14-41.pdf</a>
Hopefully this additional information is helpful to you, and thanks again for a good question.
