Healthcare premium business deduction.

[lesstax2016]

Turbotax will not let me deduct my healthcare premiums on Form 1040 line 29, as my healthcare premium deduction exceeds my business income on line 12.  I can not find anywhere in the IRS rules that says the business healthcare premium deduction is limited by business income, only that you have to show a profit to deduct healthcare premiums.  Turbotax 2016 let me deduct all of healthcare premiums, even though they exceeded by profit. 

Sorry, but did not include enough info.  I put all of my net profit into a solo 401K.  My healthcare does not exceed net profit.  Turbo tax is putting my healthcare premiums on Schedule A itemized deductions.

12.  Business Income...........14,062

27.  Self Emp tax ded.............994

28.  Qualified Plan.................13,608

29  Self emp.  health insurance...........0

[BMcCalpin · Accepted solution]

Look at the "Self-Employed Health Insurance Deduction Worksheet—Line 29 " at the top of page 33 of the IRS instructions for form 1040 (https://www.irs.gov/pub/irs-pdf/i1040gi.pdf). The worksheet shows that you can deduct on line 29 the smaller of your health insurance cost or your net profit (but see the worksheet for the note about other earned income from the business).

The IRS instructions read the same way in 2016. At the moment I don't have a way to address your concern about 2016.

[lesstax2016]

Sorry, but did not include enough info.  I put all of my net profit in a 401K.  My healthcare premiums do not exceed my net profit.  I just don't pay any taxes on net profit, as I put it in the 401K.  Turbo tax put the healthcare premiums under itemized deductions.
Thanks

[BMcCalpin]

TurboTax is working correctly. Line 2 on that Worksheet says (in the fine print) " Enter your net profit* and any other earned income** from the business under which the insurance plan is established, minus any deductions on Form 1040, lines 27 and 28. " <====  Your SEP contribution wipes out your health insurance deduction.