Here are some considerations to make and possible reasons why your software is being stubborn.
The software is likely giving you this error for two main reasons:
The "Shared Allocation...
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Here are some considerations to make and possible reasons why your software is being stubborn.
The software is likely giving you this error for two main reasons:
The "Shared Allocation" Complexity: Because you were divorced during the year and your ex-husband is filing a separate return, you have to "allocate" percentages of the premiums, benchmark premiums, and advance credits between the two of you (usually 50/50, but it can be negotiated).
The Circular Calculation: To claim the self-employed health insurance deduction for your daycare, you need to know your Premium Tax Credit (PTC). But to calculate your PTC, you need to know your Adjusted Gross Income (AGI). Since the business deduction affects your AGI, it creates a "circular calculation" that standard worksheets often can't process if an allocation is also involved.
Since the "Smart Worksheet" won't support it, you generally have to take the manual route. Delete this worksheet by going to tax tools>tools>delete a form> Business Related Premiums Smart Worksheet" or something related. Delete this. If using the software, go to the forms mode and delete it from there.
1. Determine Your Allocation Percentage
You and your ex-husband must agree on a percentage (0% to 100%) for the months you were on the same policy. If you can’t agree, the default is usually 50%. There is a section in the 1095 section where you will report shared allocations. Navigate through the section until you find it.
2. Calculate the Business Deduction Manually
You can only deduct the portion of the premium that is attributable to you and is not being paid for by the Premium Tax Credit.
Go to deductions and credits>medical> Affordable Care Act
In the summary, note what the premium tax credit is
Now go to your business return and report your SE Health Insurance Deduction manually by taking the shared allocation of your premiums and minus the Premium Tax Credit.
Now go to the business section of your return and manually enter your self-employed health insurance that should be listed under expenses.