topic self-employed health insurance deduction in Get your taxes done using TurboTax

self-employed health insurance deduction

swick — Tue, 15 Jul 2025 14:10:26 GMT

I am a sole proprietor who purchased health insurance through the ACA. I received tax credits, so needed to complete Form 8962. I also completed Form 7206 to determine how much of the premiums I paid could be deducted. It appears Turbo Tax adds both the amount from Form 7206, Line 14 (allowed deduction) AND what I think is the iterative calculated amount from Form 8962 together on Schedule 1, Line 17.

So, I paid $10,760 in premiums in 2024. If I only complete form 8962, TT appears to perform the iterative calculations and results in $9,408 automatically input into Schedule 1, Line 17. However, if I then complete Form 7206, TT then adds the amount from Line 14 (allowed deduction), resulting in $21,513 automatically input in Schedule 1, Line 17.

Why is this happening and what should I do to correct this issue?

Hope this makes sense!

Re: self-employed health insurance deduction

AmeliesUncle — Tue, 15 Jul 2025 22:04:41 GMT

Don't enter the health insurance cost outside of the 1095-A.

As you are seeing, the program automatically does it, so if you enter it again elsewhere, it incorrectly duplicates the cost.

Re: self-employed health insurance deduction

VolvoGirl — Tue, 15 Jul 2025 22:11:50 GMT

Self-employed health insurance deduction goes on Form 1040 Schedule 1 line 17 then to 1040 line 10, as long as the expense is not greater than your net self-employment income. If it does exceed your net self-employment income it gets split automatically. An amount equal to your net self-employment income goes on Form 1040 Schedule 1 line 17 and the remainder gets added in to medical expenses on Schedule A.

BUT do not enter any Health Care Marketplace insurance you bought. If you enter the 1095-A and select the "Self-employed and bought a Marketplace plan" box, it will automatically include those premiums in the SE Health Insurance section. So you shouldn't enter it again on schedule C.

Re: self-employed health insurance deduction

swick — Wed, 16 Jul 2025 01:11:14 GMT

Thank you!

Re: self-employed health insurance deduction

swick — Wed, 16 Jul 2025 01:11:50 GMT

Thank you! I wish this was clearer during the preparation process!

Re: self-employed health insurance deduction

1597980 — Fri, 03 Apr 2026 21:31:30 GMT

I found your post to be very helpful. I need some additional help with my situation. I'm confused by the numbers calculated by TT. I'm self-employed, bought health insurance from marketplace, completed 1095A. I also have entries on Form 7206 that include LTC insurance and dental/vision insurance, totaling $2,452. Schedule 1 line 17 shows $12,752 and I don't understand how this is calculated.

I had a one time settlement payment towards the end of the year so my income spiked. When I updated my income on marketplace, they already charged my account for December payment. I understand I needed to pay back all the PTC I receive, but I wonder what is the actual premium I should pay. The “annual contribution amount” on Form 8962 line 8a shows $32,788. Is this possible? Is this what they made me pay? The plan I chose had a monthly premium of $843 - I thought that would be the maximum I had to pay if my income spiked.

I understand from your post that when my health insurance deduction exceeds my net SE income, it gets split to Sch A and I do see that TT did that. However, the total amounts on Sch 1 line 15 to 17 is less than my net SE income (I haven't figured out retirement deductions yet, so line 16 is currently blank). The amount on Sch A is $20,376. $20,376+12,752 - 2,452 (LTC/dental/vision) = $30,676. This does not equal to the $32,788 "total contribution" to marketplace.

Shall I just trust TT calculation? Also, can I make contribution to a retirement account up to the amount that makes total of line 15-17 equal to my net SE income? Otherwise it seems I'm wasting my deductions. I initially had TT maximize solo 401K calculation, but the amount it put on line 16 makes the total of line 15-17 exceed my SE income. How do I do this properly? TT indicates I can make taxable IRA contribution, so I have taken this deduction.

Thank you very much!