Self Employed Health Insurance Deduction with multiple jobs

[Ihatetaxes56]

I had several freelance jobs this past year with some income reported on W-2 and some reported on 1099-NEC. None of them offered health coverage so I purchased a plan on the state marketplace. 2022 TurboTax indicates that you should not input health insurance purchased on a marketplace under Business Income and Expenses (Sch C) but rather input your 1095-A form and it will calculate the self-employed deduction for health insurance. When inputting the 1095-A there is a box you check indicating "I'm self employed and bought a marketplace plan", which then takes you to a screen requiring you to choose which business was associated with the policy.

Why does the program require you to pick one business associated with the policy? I needed health insurance and none was provided by any of the jobs I worked. Is it correct to just pick one of the jobs reported on a 1099-NEC and let the program calculate my self employment deduction for health insurance? Or should there be some proration applied?  TurboTax doesn't seem to provide for the latter option.

[Bsch4477]

It doesn’t matter which self employment you choose because the medical insurance premiums are not deducted from a specific business but instead are an adjustment to income on Schedule 1. That adjustment then lowers your AGI.  It has no relation to a particular Sch C. 

[DawnC]

If all of your jobs were doing the same type of work, those should all be reported together on one Schedule C.   You should only have multiple Schedule Cs if you have businesses in different industries.   You can have 20 different 1099s reported all on the same Schedule C if they are all for the same type of work you performed in your business.    If all the work is in the same line of work, you want to combine them so you maximize your Self-Employment Health Insurance Deduction.   

The deduction cannot exceed the earned income you collect from your business.  And there is no double dipping allowed.   TurboTax will link your 1095-A to one business schedule (can combine all your 1099-NECs).   When you have Premium Tax Credit (see below) and Self-Employed Health Insurance Deduction, an iterative calculation occurs.   See page 13, item #7 of the Unsupported Calculations document.  Because of this, you may need to refer to Pub 974 to determine the deduction amount.  

ACA marketplace plans, purchased through a state or the federal exchange at Healthcare.gov, are tax deductible.  This can benefit self-employed individuals who can’t get employer-sponsored health insurance coverage or insurance through their spouse.   For self-employed people (you), it’s an adjustment to your taxable income.

When you have medical insurance through the ACA marketplace, you use pre-tax dollars to pay the premiums. As a result, anyone who has ACA coverage can deduct the full cost of their annual health insurance premium on their taxable income, using Form 1040 - with an exception:

• If you qualify for ACA premium tax credits found in the marketplace, it will impact how much money you can deduct on your taxes.  If you receive a subsidy that pays for 70% of your health insurance premium, you would only be allowed to deduct the 30% you pay on your taxes.

[Ihatetaxes56]

Thank you - this was helpful. I referred to Publication 974 and completed the multitude of worksheets there which didn't change the self employment health insurance deduction.  I am still puzzled by the statement that the insurance must be "established under your business" in 1040 Schedule 1 instructions and wonder about deducting the full amount from the two jobs reported on 1099-NECs rather than a pro-rated amount between W-2 and 1099 incomes (although none of these jobs offered health coverage). I can't seem to find anything that specifically addresses this so I will assume the Turbotax calculation is appropriate.