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.
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.
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.