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Level 1

Why is health insurance of $18.04K being reduced to allowable of $17.1K against $18.4K of SE income (1099 consultant)?

 
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Level 12

Why is health insurance of $18.04K being reduced to allowable of $17.1K against $18.4K of SE income (1099 consultant)?

The SE Health Insurance premium deduction is limited to the amount of net income generated by the business, further reduced by 1/2 of the SE tax.  Although you had 18.4K net income, the SE tax on that amount would be roughly 2700.  1/2 of that amount is 1350, and that brings your SE income down to about 17.1K against which the Health Insurance premium deduction is allowed to be taken against.

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Level 12

Why is health insurance of $18.04K being reduced to allowable of $17.1K against $18.4K of SE income (1099 consultant)?

The SE Health Insurance premium deduction is limited to the amount of net income generated by the business, further reduced by 1/2 of the SE tax.  Although you had 18.4K net income, the SE tax on that amount would be roughly 2700.  1/2 of that amount is 1350, and that brings your SE income down to about 17.1K against which the Health Insurance premium deduction is allowed to be taken against.