How can I deduct the amount I have to pay for Healthcare.gov?

[forrest999]

At the beginning of 2022 I was self-employed and had health insurance through Healthcare.gov. In March of 2022 my wife got a job that provided health insurance so I cancelled my Marketplace coverage. I did not have to pay any portion of the Marketplace coverage. 

Now that I am getting ready to file our taxes, when I enter the information from 1095-A TurboTax now says I have to pay the full amount that the Marketplace covered, almost $2000 for those first three months.

Under normal circumstances I could deduct my health insurance coverage as self-employed, but I can't see a way to apply the amount I have to pay. 

What are my options?

[AliciaP1]

You will enter your Form 1095-A and on the Let us know if these situations apply to you screen after the entry, you will mark I'm self-employed and bought a Marketplace plan.  TurboTax will then make sure you associate the correct self-employment income form and calculate your deduction.

Even if you get the deduction, you may have received the Premium Tax Credit in excess of what you were allowed for the time you had the policy and that may be what you are having to pay back.  The PTC is calculated on your income reported compared to the income you estimated when you purchased the plan.

[forrest999]

Thank you for taking the time to understand my question and provide the detailed response.

I have just one followup question. Since I then have to pay the full amount for the health coverage for that period, can I then deduct that amount as a legitimate health insurance expense for my business?

Thank you.

[MarilynG1 · Accepted solution]

When you entered your 1095-A and indicated that you were self-employed, the SE Health Insurance Deduction shows on Schedule 1, Line 17.  Any unallowed amount will automatically go to Schedule A.  You don't have to enter it again anywhere.

Here's more info on Self Employed Health Insurance Deduction with 1095-A.

@forrest999 

[forrest999]

Peace of mind achieved. Thank you.