Yes, you may
deduct 100% of health insurance premiums for Medicare B and Medicare D as a
self-employed business expense if your business has a net profit.
When you are entering your self-employed business information
using TurboTax Home and Business, you will find the input screen for entering
your premiums in the Business Expenses
> Other Common Business Expenses > Insurance Payments section.
Take a look at the following information taken from the
TurboTax help content for more details about deductible health insurance:
Health Insurance Coverage
You can deduct up to 100% of health
insurance premiums for you, your spouse and your dependents if you are self-employed and have a net profit from the business for which
you created the plan.
This amount can include health insurance premiums you made for your children who were under age 27 at the
end of 2017 even if the child was
not your dependent.
Medicare B and Medicare D premiums should be entered here instead of in the Social
Security Benefits section.
Do not include:
- long-term care premiums - this
information should be entered on the next Interview screen
- any amounts paid from retirement
plan distributions that were nontaxable because you are a retired public safety
office
- Any amounts included on Form 8885, Health Coverage Tax Credit, line 4
- Any advance monthly payments shown on Form 1099-H, Advance Payments for the
Health Coverage Tax Credit
- Any payments for months you received the benefits of advance payments for the
Health Coverage Tax Credit (Form 8885)
These deductions are figured as part of
your Form 1040, not as part of Schedule C.
Do not include health insurance purchased through a Health Insurance
Marketplace (also known as an exchange). These premiums are entered on Form
1095-A in the program. Also, do not include any amounts from line 4 of the
Health Coverage Tax Credit (Form 8885).
If you or your spouse could
participate (even if you declined coverage) in an employer's health plan at any time during a given month, you cannot take the deduction for that
month. However, payments for those months are deductible on Schedule A if
you itemize deductions.
The deduction may be limited if the
business has low net earnings. This means that you may not be able to deduct 100% of your premiums.
This entry should be reduced by any reimbursement received.
Note: These deductions are figured
as part of your Form 1040, not as part of Schedule C.
