SusanY1
Expert Alumni

Self employed

I have reviewed the diagnostic copy of the return that you have provided, and when I remove the entry for self-employed health insurance premiums from the expenses from Schedule C the deduction seems to populate correctly, at $10,333.  To be fair, I am not sure why the amount $5,264 is what you believe you're entitled to - it appears to be the $10,333.

When you see the $12,000 number it's combining the 1095-A calculations (which don't appear on Form 7206) with the 7206 calculation on Schedule 1 (but then the number is limited as well by the business profit showing).  

The calculation for self-employed health insurance deductions with a 1095-A are done instead on the worksheets in Publication 974.  Unfortunately, these are what we often refer to as "hidden worksheets", so they don't show up in the list of of forms that you'll see with your tax return.  However, you can follow those worksheets yourself (if you care to) and see how TurboTax calculates the deduction. 

It is roughly equal to your total premiums on 1095-A (Part III, Column A) less total monthly advance premium tax credit (column C) plus the premium tax credit repayment.  

If you add those numbers yourself you'll see you get a number very close to the number that populates on Schedule 1, Line 17 after removal of the entry in the business income an expenses for the 5264 of health insurance premiums.

Again, I am not sure where the $5264 number is derived from.  If it is additional premiums paid beyond the Marketplace, it may be appropriate to leave it there - but then realize the calculation is going to partially be on the Form 7206 and partially on the worksheets from Publication 974.  If you're certain $5264 is the correct number, then unchecking the box in the section for the 1095-A entry that it is related to self-employment income will make the adjustment in the other direction.  However, I believe TurboTax calculates this correctly when the 5264 is removed and you're entitled to that higher deduction. 

@mronufrak 

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