This may be a case of watching the Refund Meter too closely.
Out of pocket health insurance premiums by someone who is self-employed appears on line 16 of Schedule 1 (1040). Is there anything there?
As you know, the way the Affordable Care Act works is that you estimate your annual income at the beginning of the year and tell the Marketplace.
The Marketplace estimates how much assistance you need to be able to afford the health insurance using formulas. Then the Marketplace sends that assistance to your health insurance company as partial or full payment of the health insurance premiums.
This assistance is called the Premium Tax Credit (PTC).
Then, at the end of the year when your final income is known, there is a reconciliation of the Premium Tax Credit that was paid for you with the amount that you should have received based on your actual income. This is done on form 8962.
On your tax return, if you were paid too much PTC, then this amount is added to your tax bill on line 2 of Schedule 2 (1040). If you were paid too little, then you receive additional PTC on line 8 on Schedule 3 (1040).
Please do us the favor of finishing the data entry of your return and then looking to see what the numbers are on these lines. Then please come back and ask us your questions if your explanation is needed.
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