figuring out my self-employed health insurance deductions
I have trouble figuring out my self-employed health insurance deductions.
For health insurance, I entered dental and vision plan insurance on Form 7206 line 1. I bought my health insurance from market place. Do I enter the premiums paid on line 1 as well? Where do I find this amount? Seems to me Form 8962 line 8a calculates “annual contribution amount” based on MAGI. Do I enter this amount into Form 7206 line 1?
I had a one time settlement payment towards the end of the year so the income spiked. The “annual contribution amount” on Form 8962 line 8a is over $33,000. Is this possible? The plan I chose had a monthly premium of $843.
Schedule 1 Line 17 shows my health insurance deduction to be $12,752. I don't know how this amount is calculated. I had previously enter on Form 7206 line 1 about $300 dental and vision insurance, line 2 $2,000+ long care insurance, for a total $2,452. When I tried to update the Business Expense – Self-employed Health Insurance section where $12,752 is listed, it tells me $2,452 was deducted from my income attributable to Schedule C, but I cannot update the number.
If I am able to add $33,000 to $2,452 as health insurance deduction on Schedule 1 line 17, then this amount far exceeds my net profit of self-employment. My understanding is that line 15-17 combined cannot exceed the net profit. Can I deduct this amount elsewhere? Can I deduct it as a medical expense since it exceeds 7.5% of my AGI? If so, do I just deduct the $33,000 or include the $2,452 as well?
