No, she can't take the deduction because she declined her employer coverage. If you made any substantial changes during the year, such as higher income, that affects your PTC.
Self-employed health insurance deduction
- To get this deduction, your Schedule C must show a net profit.
- The deduction amount generally can't exceed your net profit amount.
- If you (or your spouse if filing jointly) were eligible to participate in an employer's health plan during any given month—even if you declined the coverage—the premium you paid for that month can't be claimed under this deduction.
- Health insurance premiums you paid for your child, even if you aren't claiming them as a dependent, are eligible for this deduction as long as your child was age 26 or younger at the end of 2021.
- The self-employed health insurance deduction shows up on Schedule 1, line 17.
