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pkozub
New Member

I had self-employment income from a business (K-1) throughout the entire year but also was employed on a W-2 for part of the year. I bought an insurance plan through my state marketplace. Can I still deduct the cost of the premiums from my self-employment

My income from my business was indicated in Box 14 on my K-1, and I made state and federal estimated payments throughout the year.
1 Reply
MichaelDC
New Member

I had self-employment income from a business (K-1) throughout the entire year but also was employed on a W-2 for part of the year. I bought an insurance plan through my state marketplace. Can I still deduct the cost of the premiums from my self-employment

Yes. You can deduct since you were a partner with net earnings from self-employment for the year. For any month you qualified for insurance on an employer plan, you wouldn't be able to claim the self-employed deduction.

Any Health Insurance Marketplace premiums you paid will be reported on Form 1095-A. Simply follow these directions to enter your 1095-A in TurboTax. Since you self-employed, you are also permitted to deduct your portion of the health insurance premiums (total premium minus the premium tax credit you are permitted) as a business expenses.

TurboTax will compute this amount and enter it on 1040 Line 29.  If no amount is showing up on 1040 Line 29, go through the Personal >Health Insurance section again making sure to answer the question about being self-employed AND selecting the Schedule C to which you want to attach the deduction.  When you are stepping through the questions, you have to click on "edit" when you get to the 1095-A data screen.  The self-employment question is on the page after you have reviewed your 1095-a entries. 

For partners, the policy can be either in the name of the partnership or in the name of the partner. You can either pay the premiums yourself or your partnership can pay them and report the premium amounts on Schedule K-1 (Form 1065) as guaranteed payments to be included in your gross income. However, if the policy is in your name and you pay the premiums yourself, the partnership must reimburse you and report the premium amounts on Schedule K-1 (Form 1065) as guaranteed payments to be included in your gross income. Otherwise, the insurance plan will not be considered to be established under your business.

If needed, this is how to enter your Self Employed Health Insurance you paid through your Partnership, LLC or S-Corporation into TurboTax Premier: 

  1. Click the Federal Taxes tab
  2. Click Wages & Income
  3. Scroll down to Business Items
  4. Click the blue Show More button in this section
  5. Click Start (or Revisit) next to Schedules K-1, Q
  6. Click Yes
  7. Click Update next to the Schedule K-1 you need to add the deduction for
  8. You'll need to click through the slides until you come to the screen shown below.  Please note that the first image is for Partnership and the second image is for S-Corps
  9. Here you'll need to put a check next to "I personally paid health insurance....."
  10. The next screen will ask for the amount you paid


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