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dodoherty
New Member

Self-employed health insurance

My wife and I are both self-employed filing married joint return.  We bought health insurance through the marketplace and meet the requirements to claim a health insurance deduction.  I entered the amount we paid, $2971, in the Schedule C expenses under Other Common Business Expenses->Insurance Payments->Health Insurance Premiums.   On line 17 of our Schedule 1, there is a much higher amount, $7699.  This is the same amount which also appears under Less Common Business Situations->Self Employed Health Insurance.  When I click Update for this entry is displays the message "We have deducted from your income $2971 of allowable self-employed health insurance attributed to your schedule C".    Can anyone tell me what is going on here?   We don't know where this $7699 is coming from and whether we are entitled to this deduction.   

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2 Replies
AliciaP1
Expert Alumni

Self-employed health insurance

It is calculated from your 1095-A entry.  You need to delete the amount of Health Insurance Premiums on your Schedule C as that line is for health insurance premiums you pay for employees through the business.  

 

To claim the Self-employed Health Insurance Deduction correctly, review your 1095-A entry and the box, I'm self-employed and bought a Marketplace plan on the next screen.  This will calculate the allowable Self-employed Health Insurance Deduction and any allowable Premium Tax Credit.

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Self-employed health insurance

You may have entered the $2971 in the wrong place.  It doesn't go directly on Schedule C.  In fact you don't enter it at all.  The Schedule C expense is only for heath ins you paid for your employees.

 

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.

 

 

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