If you paid a Covered California premium in 2023, you can include it with other health insurance premiums you paid in 2023 as a self-employed person. However, because the amount of the self-employed health insurance deduction may affect the amount of the Premium Tax Credit, and the amount of the PTC may affect the amount of the deduction, a taxpayer who may be eligible for both may have difficulty determining the amounts of those items.
A taxpayer who may be eligible for both may follow the instructions in IRS Publication 974 to determine amounts of the self-employed health insurance deduction and PTC that are allowable under the law. If you are eligible for both a self-employed health insurance deduction and the PTC for the same premiums, you may use any computation method that results in reporting amounts that satisfy the rules for both the deduction and PTC, as long as the sum of the deduction claimed for the premiums and the PTC computed, taking the deduction into account, is less than or equal to the enrollment premiums.
On your 2024 return, you will enter amounts in the Health Care section of TurboTax from Form 1095-A in order to calculate whether you are entitled to the Premium Tax Credit or have any excess advance credit to pay back.
See Pub. 974 if the insurance plan was considered to be established under your business and was obtained through the Marketplace, and advance payments of the premium tax credit were made or you are claiming the premium tax credit.
See this TurboTax tips article for more information regarding self-employed health insurance.
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