The issue here is when you have insurance through the exchange, you have to determine your allowable premium tax credit, which is based on your income. Your income has to factor in your self-employed health insurance deduction. However, you can't use the insurance deduction to the extent that it benefits you with regard to the premium tax credit.
So, you have to go through a complicated calculation to determine what your allowable self-employment insurance deduction is. Often, that results in a deduction that is less than your insurance premiums paid as reported on form 1095-A. So, the amount on line 16, schedule 1 represents your allowable self-employed insurance deduction, which is the product of a complicated calculation based on your income and the amounts reported on your form 1095-A.
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