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