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Level 3
posted Feb 6, 2022 7:50:10 AM

Can I take a credit for Marketplace Insurance Premiums paid if i am self employed AND also work a part time job?

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3 Replies
Expert Alumni
Feb 6, 2022 8:01:29 AM

Yes, you can deduct the Market Insurance premiums as Self-employed health insurance if you are self-employed. It does not matter whether or not you also have a part-time job.

 

In TurboTax Self-Employed, you enter your health insurance premiums in the Business Expenses section of your business.

 

The deduction is limited to the amount of net income (profit) of your business.

 

Go to Business Expenses > Other Common Business Expenses > Health Insurance Premiums.

 

TurboTax will transfer the amount to Part II line 17 of Schedule 1 of form 1040 (self-employed health insurance deduction).

Level 3
Feb 6, 2022 8:13:58 AM

Thanks for the response. Just to clarify... I can take a credit if I used money from self-employed income to pay for Marketplace insurance? If so, how do I prove that I did not use money from part time job to pay for Marketplace Premiums?

Expert Alumni
Feb 6, 2022 8:28:55 AM

Please note that the health insurance premium is a tax deduction (which reduces your taxable income) and not a tax credit.

 

It does not matter which money you use to pay these premiums, but you can only deduct the premiums if your self-employed business makes a profit. No profit or a loss means no deduction.