I am self-employed and received cobra premium assistance during COVID. Since the premium assistance is excluded from income for FIT purposes, I only deducted the premiums I actually paid. E.g., if health insurance premiums are $100/mo, and I got 6 months of premium assistance, I reported $600 worth of deductions and not $1200.
Assuming that is correct, when I need to report the premium assistance as income in California, do I then get an offsetting deduction for that amount ($600 in the example above)? If so, how do I adjust the health insurance payments made to reflect the full amount owed ($1200) just for california?
