Hi MaryK,

Just to be sure -- am I correct that I can also deduct Medicare parts B & D premiums (which are not subsidized), but cannot deduct the Medicare supplement premiums (which are subsidized).

Thanks,

-Gil Smith

Where do I deduct them on the forms

It is an option included on the self-employment (Schedule C) expenses list.

Enter it there as an expense. 

My wife and I are retired but are self-employed in property management partnership LLC.  We each have Medicare and private health insurance.  We also have long term care policies.  We take no salary from  the LLC other than  the profits/losses.  Are we eligible to take the Self-Employed Health Insurance Deduction?  If so. how do we enter the information in TurboTax?

You are able to deduct the Self-employed Health Insurance deduction if you have a profit.  Enter your insurance expense in the self-employed business expense section of TurboTax Self-Employed:  

How do you get the deduction entered on the 1040?  I keep getting directed to the line 16 of the 1040 worksheet but the system does not let me enter the premium, override the amount or direct me to another location.  This is from an LLC so can not enter on the Schedule C.

As it turns out, you enter this in the K-1(1120) interview.

Do a Search (upper right) for k-1 and click on the jump-to link (Mac users must find K-1 in the Topics List).

Then choose the S corporations, and start the K-1 (1120) interview. 8 or so screens in, you will see a screen that is titled, "Other Situations". Check the box that says, "I personally paid health insurance and/or long term care insurance premiums for myself and my family, and the S corporation paid me wages."

When you hit Continue, the next screen will ask you for the amount of the premiums paid.

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@MaryK4 wrote:

Yes, for the Self-Employed Health Insurance deduction, you can deduct any expenses you paid that were not subsidized, including the Long Term Care insurance.

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@MaryK4 I think that sounds reasonable, but unfortunately https://turbotax.intuit.com/tax-tips/home-ownership/deducting-health-insurance-premiums-if-youre-sel... seems to say otherwise:

You can only claim the health insurance premiums write-off for months when neither you nor your spouse were eligible to participate in an employer-subsidized health plan.

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So I think that would apply to only medical premiums, not all of the other mentioned types of premiums (like dental and long-term care) if those others are not subsidized and offered to the taxpayer? Is the TurboTax tip page incorrect about that?

"So I think that would apply to only medical premiums, not all of the other mentioned types of premiums (like dental and long-term care) if those others are not subsidized and offered to the taxpayer?"

Yes, you are correct to wonder. The Help page is referring only to like premiums, such as for general health coverage. It does not refer to additional coverage that is (1) deductible on Schedule A as a medical expense, and (2) for which there is no corresponding employer-based coverage. 

"You can only claim the health insurance premiums write-off for months when neither you nor your spouse were eligible to participate in an employer-subsidized health plan."

The phrase "health insurance premiums " refers to whatever is in the employer-subsidized plan, and not all possible coverage.

I am a greater than 2% shareholder of S corp.  I am told I need to add my health insurance premiums onto Schedule 1 line 16 for adjustments to income but my Turbo Tax deluxe will not let me do that.  Do I need to upgrade to some other level?

@Kevlor2862 You will need to upgrade to enter a K-1. 

Click this link for instructions for How to Claim Health Insurance for S Corp Shareholder.