Why are my self-employed health insurance premiums subject to the 7.5% limit? Shouldn't they be 100% deductible?

[pmazzara1]

My income is multiplied by 7.5% and my premiums do not exceed that so I don't get a deduction on my itemized return.

[RobertB4444]

You are entering your self employed health insurance in the wrong place and it is therefore being treated as a regular itemized deduction.  Delete the information that you have entered there.  Then-

• Go back to your schedule C
• Click 'edit' next to your business
• Scroll through til you get to business expenses and click on 'All Other Expenses'
• Enter your premiums under 'Self Employed Health Insurance Premiums' in that area.

TurboTax will add the necessary forms and enter the deduction in the correct place for you.

@pmazzara1 

[pmazzara1]

Thanks for the reply.  I went back and added it to the Schedule C, however, information I entered under 1095-A automatically goes to Schedule A (itemized deductions).  In order to delete that, I have to delete the information from 1095-A, and won't that flag the return since that information will be missing? My deduction is zero because it is less than 7.5% of my gross income, however it still shows up under schedule A.  Not sure how to get around entering it twice unless I remove the 1095-A information.

[DoninGA · Accepted solution]

@pmazzara1 On screen following entry of the Form 1095-A Let us know if these situations apply to you

Did you check the box labeled I'm self-employed and bought a Marketplace plan

[pmazzara1]

No.  That's where I went wrong.  Thank you.  Do you happen to know if the self-employed health insurance deduction affects the maximum amount you can contribute to a SEP?  It doesn't seem to affect my net profit.

[DoninGA]

@pmazzara1 Sorry, I am not that familiar with SEP

[RobertB4444 · Accepted solution]

No, you would use your net income from the schedule C to calculate your maximum SEP contribution.  The self-employed health insurance deduction does not affect that.

@pmazzara1