If you report this as business income you will end up paying Self-Employment taxes on it when the deduction of the health insurance premium did not originally affect what was paid for Self-Employment taxes in the year it was deducted. Seems like it is more appropriate to list as misc income on Schedule 1 (line 8). OR should it reduce the amount of SE Health Insurance deduction the year it was received (Sched 1 line 17)?
