Trying to figure out the specifics on this situation:
- Taxpayer is retired, has minimal W2-reported income, and is NOT self-employed. Receiving Social Security benefits (started during 2020), with Medicare B withheld premiums reported on SSA-1099 (also started during 2020).
- Spouse (MFJ) has W2 income and profitable self-employment on Schedule C. Purchased health insurance through exchange.
- Neither is eligible for employer-sponsored group coverage.
Using TurboTax Home & Business 2020.
How best to report this? Would it be like this?
- When reporting SSA-1099, do NOT include withheld Med-B premiums here, just report net benefits as reported in Box 5, and
- In 1095-A section, report info reported on 1095-A for the self-employed spouse to figure PTC (or amount due), checking "I'm self-employed and bought a Marketplace plan," selecting the SE business from Jan-Dec to associate that business with the policy.
- For SE spouse's Business expenses, enter these Insurance Payments > Health Insurance Premiums > enter "Medicare Part B: $XX" (amount reported from taxpayer's SSA-1099), and any out-of-pocket premiums, even though these are the taxpayer's premiums, not the self-employed spouse's premiums.
In other words, manually enter ALL Med-B premiums as "self employed" health insurance with the self-employed spouse's Schedule C, even though these premiums are for the taxpayer, who isn't self employed; and for the spouse, report all premiums through 1095-A/PTC, so that it flows through as an adjustment to income (Sch1/L16). Sound correct?
