Has TurboTax fixed the health insurance deduction issue yet? Or do we need to calculate this ourself? Also, my self-employed income has increased last year 2024, so the Form 1095-A I've received does not reflect what I need to pay for health insurance for year 2024. How do I calculate this myself if TT cannot? Also, Form 1095-A has the two sections: one for my spouse & me, and one for my child. Can I deduct both? Thank you.
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You can generally deduct the total amount paid for health insurance coverage for you, your spouse, and your dependents (including children under age 27 at the end of 2024).
For self employed health ins 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.
Self-employed health insurance deduction goes on Form 1040 schedule 1 line 17, 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.
Enter your 1095-A as shown on the form if your child is included on your tax return.
Here's more info on How to Enter Self Employed Health Insurance and How to Enter Form 1095-A.
But will it be adjusted automatically / correctly? Let's say, I made a low income of $50K last tax year 2023, so I paid a small amount for health insurance. Then in 2024, I made a high income of $100K, so I would need to pay a higher amount for health insurance. However, I did not adjust my income on the health insurance exchange, CoveredCA, during 2024, so basically, I paid the same amount as I would make $50K instead. So the Form 1095-A 2024 would only show the small amount I paid during 2024. So now when I'm filing tax, I have to pay more whatever I owe for health insurance. Will Turbotax know the exact premium I would have to pay for my 2024 health insurance premium, so that I can deduct from my self-employment net income?
The Finance Buff website below shows you how to calculate the self-employed Affordable Care Act subsidy manually yourself, but it would be better if TT can do it for you. Thanks.
https://thefinancebuff.com/self-employed-aca-subsidy-calculator
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