DawnC
Expert Alumni

Get your taxes done using TurboTax

You can tell TurboTax in the 1095-A section that the insurance is not associated with self-employment.  This will prevent TurboTax from getting involved in determining the SEHI deduction amount or checking to see if the sum of the SEHI deduction and PTC exceeds total premiums.      

 

You can manually enter the SEHI deduction from the Schedule C section.    The amount of the deduction + any Premium Tax Credit you received on Schedule 3 cannot exceed the amount of premiums paid.   The line 16 entry can't be larger than your net profit minus the deductions on line 14 and 15 (the deductible part of the SE tax and the contributions to your Self-Employed SEP, SIMPLE, and Qualified Plans. So increasing your retirement contributions can actually decrease your self-employed health insurance deduction.

 

If you are using the desktop software, you can adjust the Medical Expense deduction by entering a positive adjustment on Line 13a to remove the amount (or portion of that amount) on Line 2b that was claimed as a SEHI deduction from the Schedule C section.   If you don't make this adjustment from Forms mode, your Schedule A deduction will be overstated.    @hbomb1

 

Another discussion about this topic can be referenced here.    Since the SEHI  adjustment  changes the rest of the return and affects the PTC later, the final adjustment  is not calculated and added until the PTC is calculated and then the SEHI is adjusted.    

 

Another discussion about SEHI and PTC.

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