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petermpls
New Member

healthcare premium (1095-A) deduction for self-employed

We acquired our healthcare coverage from the exchange hence were issued a 1095-A to reflect that.  My impression from TurboTax is we cannot deduct the premiums under my wife's business (self employed) because our premiums are reported on 1095-A.  This does not make sense.  Am I misunderstanding TurboTax?  Any guidance is appreciated.

Thanks

petermpls

6 Replies
rvhatcher
Level 3

healthcare premium (1095-A) deduction for self-employed

What do you mean by "self-employed".  Are you a sole proprietor (if so, use Schedule C), or are you an LLC or a Corporation (S or C)?

VolvoGirl
Level 15

healthcare premium (1095-A) deduction for self-employed

Self-employed health insurance deduction goes on Form 1040 Schedule 1 line 16 then to 1040 line 8a, 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 16, 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.

ColeenD3
Expert Alumni

healthcare premium (1095-A) deduction for self-employed

For Schedule C, enter your 1095-A in the normal section. You will see the two screens below.

 

 

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petermpls
New Member

healthcare premium (1095-A) deduction for self-employed

Thanks for your reply.  We file a Schedule C.  My issue is why does Turbotax say not to use premiums reported on 1095-A for the self-employed insurance deduction.  

VolvoGirl
Level 15

healthcare premium (1095-A) deduction for self-employed

Where?  It might say that under schedule C input area so you don't enter it again.  You only enter it under the 1095A area.

petermpls
New Member

healthcare premium (1095-A) deduction for self-employed

Thanks Volvogirl.

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