Self-employed. Total medicare and med supp premiums of $6119. Where to enter expense: Sch C or elsewhere?

[DaveF1006]

You may enter as Schedule C business expenses. Go to the expenses portion where you enter your business information. Once you begin entering expenses, go to less common and select the downward facing arrow.  On the first page, look at the bottom right.  You should see this 1-5 of 14

1 2 3. Select 2 and you will see the Health insurance premiums category listed there to enter these premiums.

[nello]

@DaveF1006 

I’m sorry, but I don’t see “less common” or a “downward facing arrow” on the Schedule C Business Expenses screen for TurboTax Deluxe 2023 for Mac.

Here’s what I see:

TT 2023 Deluxe for Mac Schedule C

How/where EXACTLY do I enter Medicare premiums on Schedule C, please?

Thank you.

[VolvoGirl]

Try looking in All other Expenses.

Is the Medicare deducted from your 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.

And Self Employed health Insurance does not go directly on Schedule C so it will not reduce your Net Profit or self employment tax.

If your health ins exceeds your net self-employment income it gets split. An amount equal to your net self-employment income goes on Form 1040 Schedule 1 line 17 (then to 1040 line 10) and the remainder gets added in to medical expenses on Schedule A.

[nello]

@DaveF1006 
@MaryK4 

Can someone confirm that for self-employed taxpayers, Medicare and supplemental/Medigap policy premiums are entered on TurboTax 2023 Deluxe for Mac at: Schedule C → Business Expenses → All other expenses:

TT 2023 Deluxe for Mac: Schedule C → Enter Your Business Expenses → All Other Expenses

Thank you.

[VolvoGirl]

Yes you found it.  Is that the box from clicking Learn more?  That's what the Help says.  .  

[nello]

@VolvoGirl Said: 

Is that the box from clicking Learn more?  That's what the Help says.

Yes, the text in the large red box on the right side of the image I posted is the help content that pops up from clicking “Learn More”

@VolvoGirl Said:

Is the Medicare deducted from your 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.

No, I haven’t started drawing Social Security retirement benefits yet so I didn’t get an SSA-1099.  

@VolvoGirl Said:

And Self Employed health Insurance does not go directly on Schedule C so it will not reduce your Net Profit or self employment tax.

Yes, I was surprised to see that Self-Employment taxes were calculated on Schedule C income before deducting Medicare premiums.  

@VolvoGirl Said:

If your health ins exceeds your net self-employment income it gets split. An amount equal to your net self-employment income goes on Form 1040 Schedule 1 line 17 (then to 1040 line 10) and the remainder gets added in to medical expenses on Schedule A.

My Medicare and supplemental primiums are larger than what can be deducted.  So, thank you for pointing out that the excess automatically flows to Schedule A.

[VolvoGirl]

So you are paying the Medicare premiums yourself if you're  not getting ss yet?

[nello]

@VolvoGirl Said:

So you are paying the Medicare premiums yourself if you're  not getting ss yet?

Yes, I’m over 65 so I’m on Medicare and have to pay the premiums myself.

[VolvoGirl]

When I turned 65 I had to sign up for Medicare for my husband's retirement health plan so I just signed up for ss even though it was a year early for me.  So it's deducted.