How did Turbo Tax calculate The self employed Health Insurance deduction reported on Schedule1, Line 17. Please provide the specific amounts used since my calc differs?

[DaveF1006]

This would be difficult without looking at your return and the calculation worksheet. To look at this in detail and , we would like to see a diagnostic copy of your return. The information in this file is a sanitized copy meaning there is no personal information, only numbers so that we can troubleshoot in depth, check for calculation issues, and to see how certain items are applied. Here is how to order. 

For Turbo Tax online, go to tax tools>tools>share my file with agent.  When this is selected, you will receive a token number.  Respond back in this thread and tell us what that token number is. 

If you use the desktop version, go to the black stripe at the top of the program, click on online, and then select send tax file to agent. Let us know what the token number is.

[ciancec]

Hello Dave,

My Token Number is 1227845

Thank You

[VolvoGirl]

What kind of insurance did you have?  Maybe this will help?

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.

Do you get Social Security?  Medicare plan B payments are qualified as Self-employed medical insurance premiums and should be entered under Business instead of in the Social Security Benefits entry area.  So go back and take it off your SSA-1099 entry.

[DaveF1006]

After reviewing your file, there were no calculation worksheets that explained the calculation. My calculation from the 1095 A is determined by adding the the premiums you paid of $5729 and the repayment of the PTC of $1800. This totals $7529. Since the amount reported in Schedule 1 is $8724 leaving a difference of $1195.

Were there other premiums that were reported in your return that I may have missed? Reach back to me and tell what your calculations are and we can reach a consensus. We will work together to get this resolved.

@ciancec 

[CO-Crottys]

I am having some issues with the self-employed Health Insurance deduction as well. We purchased health insurance thru an exchange--but there is a credit populating and I'm not sure where this is coming from. Is it possible to still get a credit somehow? I did not input anything but the 1095-A information to my knowledge. Please help.

[CO-Crottys]

And...further, I do not see the box that VolvoGirl mentioned. Is that on Schedule C? The box I do see on the 1095-A form remains unchecked because it indicates that if checked, no one purchased health insurance thru an exchange. 

[ciancec]

Hello Dave,

I reported business liability insurance on Sch C, Line 15. No other Health insurance premiums were posted.

I removed the link to sch C painter, appearing at the bottom of Form 1095-A and confirmed that doing so removed the Self Employed Health Insurance Deduction reported on Sch 1, Line 17 and that confirmed that no other health insurance was present.

The removal of the Sch C link changed the Advance Premium Tax Credit repayment amount appearing on Form 8962 to $3,000. When this amount is added to the $5,726 annual premium I paid it totals to $8,726 which is close to the $8,724 computed by Turbotax.  

The annual premium I paid was $5,726 and I confirmed that this amount is the same as that which is computed by subtracting the $13,027 reported on Form 8962, Part 2, Column F, Row 11 from the $18,753 reported on Form 8962, Part2, Column A, Row 11.  

I agree that the total Self Employed Health Insurance Adjustment should be the sum of the $,5726 premiums I paid and the $1,800 Excess Advanced Premium Tax Repayment computed on Form 8962. I agree that Turbo Tax is overstating my Self Employed Health Insurance Deduction by $1,198.  

I recognize that any adjustment to Modified AGI will either increase or decrease the Excess Advanced Premium Tax Repayment amount computed on Form 8962.

Your time and attention to this matter is appreciated as the filing deadline is near.

If you would like to speak with me I can be reached by phone at [phone number removed].

Thank You and have a nice day

[DawnC]

After you enter the 1095-A, you get a follow-up screen where you can link your 1095-A premiums to your self-employment income.  @CO-Crottys 

[ciancec]

Hello Dave,

 I believe I have resolved my issue. Upon further review I discovered that different Modified AGI are used to compute the Self Employed Health Insurance Deduction and the Premium Tax Credit. It would be helpful if Turbo Tax would provide a separate schedule on which they show the calculations for the Self Employed Health Insurance Deduction instead of reporting it as a foot note at the bottom of form 7206. This schedule would be a useful detail of the calculation should the issue be raised during an IRS examination of the US Federal Individual income tax return.

Please confirm my understanding of the issue.

Thank you for your time and attention to this matter

Regards,

Eugene C. Cianciulli

[DaveF1006]

Yes, I agree. I have tried to research specifically to see if Modified Adjusted Gross Income (MAGI) directly affected the calculation of the health insurance deduction through the IRS and healthcare.gov but could not find anything specific.  It still points to the fact that your deduction is determined by 1) How much you pay 2) then adjusted in accordance to the reconciliation of your Advanced Premium Tax Credit (APTC).

My suggestion is to accept the Turbo Tax calculation. If you are examined by the IRS and requested to pay for the shortfall. Turbo Tax does have an accuracy guarantee where they will pay all penalties and interest as a result of a miscalculation. 

I am genuinely surprised that Turbo Tax does not have a calculation worksheet for the calculation of a Self-Employed Insurance Deduction because Self-Employed returns are returns that are the most routinely audited.

@ciancec 

[rennevat]

I'm bookmarking this for future reference as the numbers on my return are also different (more) than what I entered.    

And this is after I corrected (removed) the premiums I paid and listed under my self-employment business expenses.  One would think that Turbo Tax would have the capability to catch mistakes like mine ("hey, you listed Marketplace health insurance on your standard deductions but also have a health insurance expense on your business deductions.  Did you purchase extra private health insurance in addition to your marketplace insurance?  If not, don't list it here.").  Simple conditional programming code would be all that's needed, to catch mistakes from people like me who didn't thoroughly read info as we entered numbers.   I would not have caught this mistake if it weren't for questions on my state return that carried over the amount.