A quick synopsis: two W-2, two 1099-INT, Traditional IRA contribution, self employed business, and a 1095-A.
I have researched the issue to death and understand that I can deduct my health insurance premiums for a policy established/related to my business, up to the whole amount but limited by my net profit in the business (My W-2 employer does not offer health insurance). I also understand that there is a circular calculation that occurs (or is supposed to) as a result of that deduction (which results in a decrease to my overall income), in conjunction with the 1095-A.
My issue is that TT is listing the health insurance premium deduction on Schedule 1 Line 17 (where it belongs), but it is also listing it as a business expense! Essentially double dipping the deduction. I know that it does not belong as an expense in my business, and I am not entering it there. I am entering it in the 1095-A section and affirmatively answering the questions that connects it to the business for the health insurance premium deduction. There must be some sort of TT error that is doing this double entry.
Here are some screen shots with some additional info:
Schedule 1 showing it correctly on Line 17:
Now a pic of Schedule C:
Notice Line b2 ($3,246) above. Part of this is the health insurance premium deduction, as you will see in the next pic:
And if I click on the 2,925 entry, it links me to this:
Interestingly, it shows zero on this form (and the note at the bottom about it not appearing on this worksheet). However, it obviously is not grabbing the zero from this form like you would think it should.
And here it is showing now in the step by step view as a business expense:
The end result of TT adding this as a business expense (incorrectly) is not only a double-dip, but is also improper. And it also has the effect of making my net profit of the business $1,633, which then limits my tip deduction to that amount as seen in the 1st pic above. This then makes the net profit of the business zero, when in fact it should have a profit.
How do I fix this? Please help, I am at my wits end. Thank you.
