I am retired, but continue to act as a consultant for my prior job. My prior employer provides me with health insurance through their group plan, for which I receive a 1099-NEC for the amounts that they paid on the premiums. This is the only income reflected on the 1099-NEC. So my thinking is that I have a business income (the amount the company paid for my premiums as indicated on the 1099-NEC), and a business expense (the amount I paid for the premiums) that are equal, and which should cancel each other out. However, when I enter the expense of the premiums under the "self-employed health insurance premiums", Turbo Tax calculates self-employment taxes based on the amount of the 1099-NEC. In contrast, when I enter the expenses using the "Enter Business Expenses Not Yet Reported" page, all self-employment taxes disappear, and I have a savings of over $3000. So why don't I get the same result when using either entry? Is this a bug in the TurboTax program? I would think the default entry of a user would be under the "self-employed health insurance premiums", but I question the results.
