Writing Off Health Insurance Premiums as a Sole Proprietor in Schedule C - Premiums for Plan purchased/found through Covered CA

[botanymonontony]

Hello!

I'm hoping someone can clarify what you are to do in this situation. In the business expenses section of Turbo Tax for a sole proprietor (Schedule C I believe), there is a section to write off health insurance premiums. It says "Enter the total amount of health insurance premiums you paid for yourself, your spouse, and your dependents." However, it then has a note, "Do not enter premiums you paid for your employees or premiums paid through Healthcare.gov or your state marketplace or exchange."

We found our plan through Covered CA and receive a discount on the monthly premium based on our income. However, we do not pay Covered CA directly for our premium, we pay the insurance company "CareLA." So can we write off the premium we pay out of pocket every month or not? This wording is very confusing and would appreciate any help that can be provided!

Thank you!

[Vanessa A]

If you are not receiving a 1095-A and entering that in TurboTax, then you WOULD enter the premiums you pay in the section that asks for the premiums you pay.  The reason you would not enter it if you do receive a 1095-A is because there is a check box to mark that allows the premiums to be automatically entered as self-employed health insurance when entering the 1095-A.  This would create duplicate entries. 

[botanymonontony]

Hello,

Thanks so much for this explanation! I will enter it this way and see if I have any more questions.

Thank you!