Since you received your health insurance through the marketplace, you would not enter it as a business expense. Instead, when you enter Form 1095-A, you will indicate that you received the insurance while you were self-employed and TurboTax will carry over any premiums you paid out-of-pocket to the self-employed health insurance deduction. As you said, due to the law this year regarding recipients of unemployment, the entire premium up to the amount of SLCSP should be covered by tax credits, either received in advance or received now on your tax return. The remainder that you paid out-of-pocket does qualify for the self-employed health insurance deduction:
- In Federal > Deductions & Credits scroll down to Medical and click Start/Revisit next to Affordable Care Act (Form 1095-A)
- Answer Yes, we received or were approved to receive unemployment.
- Enter the information as it appears on Form 1095-A
- Let us know if these situations apply to you click I'm self-employed and bought a Marketplace plan.
- Select the months you were in business for 2021.
At that point, any missing premium tax credit will be applied to your return on Schedule 3 line 9. The amount that you paid out-of-pocket (annual total of the monthly enrollment premiums minus the annual total of the monthly cost of SLCP) will be included on Schedule 1 Line 17 as a self-employed health insurance deduction.
