TurboTax

File with experts
File your taxes
Experts at your fingertips

An expert helps with your taxes, or does them for you
TurboTax Expert Full Service

TurboTax Expert Assist

TurboTax Self-Employed
Prior year taxes
File myself
File myself
Do it yourself

We'll guide you step-by-step
TurboTax Do It Yourself

TurboTax Self-Employed

TurboTax Desktop
TurboTax Free

Activate your product

Prior year taxes
Business
Business
Business taxes

Get your T2 corporate return done right, your way
TurboTax Business

TurboTax Business Desktop
Tax situations
Tax situations
Tax situations

Find extra guidance for your big life moves
For investors

For 25 and younger

For self-employed

For new to Canada

For life changes
Resources
Resources
Resources

Explore tax tools, get tips, and read reviews
Personal income tax calculator

RRSP savings calculator

Learning hub

TurboTax support (FAQ)

TurboTax community
Pricing

Level 2

Solved

If self-employed

Forum|Forum|4 years ago
April 16, 2022
3 replies
0 views

No text available

TurboTax Self Employed Online

Best answer by AliciaP1

Thank you, Alicia.

Apparently, I'd already done what you suggested, however I just can't get the numbers to work out. And now I see that the total Self-Employed Health Insurance deduction is about 1/2 the figure of what I owed:

1095-A

Column A

Annual total: $10,631

Column B

Annual total: $8,760

Column C

Annual total: $8,638

Premium Tax Credit: $0

Eligible for: $1,762

Unpaid portion: $8,638 - $1,762= $6,876

SelfEmployed Health Insurance deduction listed under Tax Breaks summary: $3,346 --- How was this figure determined?

Thanks for your help!

@AliciaP1

Column A is your gross premium amount. Column C is the amount of Premium Tax Credit you received in Advance (APTC). So your actual cash paid for premiums is $1,993 according to the numbers in your post.

The amount of Premium Tax Credit you are allowed is based on your reported income. It is requiring you to pay back $6,876 of the APTC you got throughout the year. Then your SE Health Insurance deduction is also limited by your self-employed income.

So of the $1,993 you paid through 2021 and the APTC you have to pay back of $6,876, TurboTax is calculating you are eligible for $3,346 deduction based on your self-employment net income.

@milgracias

LenaH

Community Manager

We'd love to help you complete your tax return, but need more information. Can you please clarify your question?

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

milgraciasAuthor

Level 2

oops! here's the rest of the message:

I'm self-employed with health insurance from the marketplace. I earned more than I estimated and now have a big excess APTC to repay, can this amount be deducted as Self-Employed Insurance Premiums? Is it considered income? Is there anything I can do to lower this amount? Thank you!

milgraciasAuthor

Level 2

Rest of the message:

MinhT1

Level 15

Yes, the premiums you paid during the year and the amount of APTC you have to repay can be deducted as Self-employed Health Insurance.

In TurboTax Self-Employed, you enter your health insurance premiums in the Business Expenses section of your business.

The deduction is limited to the amount of net income (profit) of your business.

Go to Business Expenses > Other Common Business Expenses > Health Insurance Premiums.

TurboTax will transfer the amount to Part II line 17 of Schedule 1 of form 1040 (self-employed health insurance deduction).

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

AliciaP1

Level 13

Thank you so much for this explanation. If i can trouble you with yet another two questions:

(1)

I understand how you calculated what the actual cash paid for premiums (Col C - Col A), however when I calculate based on the actual total payment I made throughout the year, the totals are slightly different:

$1,993 vs what I actually paid $2,105. Why would that be?

(2)

How is TT calculating that I'm eligible for only $3,346 vs the entire APTC of $6,876? I feel like I'm missing something obvious?

Thanks again!!!

@AliciaP1

I don't know why your premium payments differ from what the 1095-A says. You would have to look at your premium payment history in your health insurance account and if you still have a discrepancy you will need to contact your insurance company or your Marketplace organization to correct the 1095-A. If that form gets changed, you will need to amend your return.

There is a giant worksheet that calculates the allowable SE Health Insurance deduction and it has limits based on your income from self-employment. See Calculate SE Health Insurance for more information.

@milgracias

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"