topic Affordable Care Act Insurance in Deductions & credits

Affordable Care Act Insurance

vdawg — Fri, 31 Jan 2025 04:37:37 GMT

I am self employed (sole proprietor LLC, taxed as a disregarded entity) and have had this business for many years. I have also had health insurance from Ambetter, but it is apparently a marketplace plan as I receive a 1095-A each year. I have done my taxes in TurboTax for many years.

This year, I entered my 1095-A numbers in TT just like I did last year, and a premium credit was calculated, similar to last year. Last year's credit was shown on last year's return 8962 form that TT generated. This year's return also generated an 8962 with this year's tax credit shown on it.

As a result, in TT on the "Business Income and Expenses" page where it lists each category and shows 2023 and 2024 numbers next to each other, the numbers all make sense to me. Each category that has a 2023 value also has a new 2024 value. Of course they are different, but both years have values for the same categories, as is expected as my business had the same income and expense categories. The other categories all have zeros in both years, as expected.

However, in TT on the "Personal tab - Deductions and Credits" section, there is only one difference between the 2023 and 2024 columns that I can't reconcile. The "Affordable Care Act" category has a $0 value in 2023, but a value in the 2024 column which matches the total Premium Tax Credit calculated on the 8962 form. Even though I entered a 1095-A in 2023 and the 2023 TT generated an 8962 form with a premium tax credit value similar to 2024, that value is not shown in the "Affordable Care Act" category like the 2024 value is.

Why would this difference occur? My concern is that I've somehow double-counted the premium tax credit somewhere in this year's TT; i.e. perhaps it's also included in some other number and the Affordable Care Act category should be zero like last year. But since I had a 1095-A form sent to me both years, and I entered them both as directed by TT each year, I feel like it should be correct. I just don't understand the difference on the summary page for Personal Deductions and Credits from 2023 ($0) and 2024 (the value from the 8962 form).

Thanks for any assistance you can provide.

Re: Affordable Care Act Insurance

VolvoGirl — Fri, 31 Jan 2025 04:48:42 GMT

When you enter the 1095-A are you selecting the "Self-employed and bought a Marketplace plan" box? Do you have a Net Profit on Schedule C? 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.

Heres some info on the premium tax credit. It can be a convoluted calculation. Self employment health ins and claiming the Premium tax credit

Calculation of SE Health Insurance Deduction when claiming the Premium Tax Credit on Form 8962

Re: Affordable Care Act Insurance

vdawg — Sat, 01 Feb 2025 01:55:25 GMT

Thanks for your reply.
When I entered my 1095-A this year, I definitely selected the "Self-employed and bought a Marketplace plan" box, and I was also asked to select which business the healthcare expense was associated with, along with the starting and ending months it was applied to that business (all year both years).
I also have net profit on Schedule C both years, and the net income from the business is much higher than the health insurance premiums expense.

On both returns (2023 and 2024), a value is shown for the "Self-employed health insurance deduction" on Schedule 1, Line 17. This number is part of the larger total of adjustments that is included on 1040 Line 10 on both returns (Adjustments to income from Schedule 1).

I don't have a Schedule A on either year's return, which I assume is due to not having enough items to itemize and TT suggested the Standard Deduction instead.

But the TT "Choose a task to work on" screen still shows 0 in 2023 for the "Affordable Care Act", even though it does show the PTC for 2024 for that category.