I have a full time job and I'm self employed too. I had health insurance through the market place last year. Can I deduct the portion I paid? If so, where do I enter it.

[RyanH2 · Accepted solution]

To Enter Self-Employed Healthcare Premiums:

1. Select "Business" at the top of the screen

2. Choose "Continue", then "I'll choose what I work on"

3. Select "Start" next to "Business Income and Expenses"

4. Select "Edit" next to your business name

5. Scroll down to Business Expenses

6. Now select "Start" next to "Other Common Business Expenses"

7. Select "Start" next to "Insurance Payments"

8. Now select "Start" next to "Insurance Premiums"

https://ttlc.intuit.com/replies/4230299

[fuzy4472]

So I entered my 1095-A and per line 33 (for example) under Monthly enrollment premiums it says $16,000 and under Monthly advanced payment of premium tax credit it says $11,000. So does that mean that TurboTax has already applied $5,000 Health Ins premiums to my return? That is about the amount I show that I paid in.

[TaxGuyBill]

Yes, but it also makes and adjustment for any additional credit you are receiving on your tax return, or any amount that you are required to repay.  It also uses a special (and complicated) circular calculation to give you the proper deduction and credit.

The deduction will show up on Line 29 of your tax return.

Only enter the insurance premiums in the Healthcare section.  Do not enter them elsewhere, such as in the Business section of your Schedule C.

[fuzy4472]

Mine shows nothing on Line 29. Does that mean it doesn't qualify or did I possible do something wrong?

[TaxGuyBill]

On the screen after entering your 1095-A, did you check the box that you were self employed?
Does your business have a profit?
Does your W-2 job OFFER health insurance?

[fuzy4472]

Thanks!! I just found the check box for self employed. I missed it. Yes I had a profit. Yes my W-2 does offer it.

[TaxGuyBill]

WHOA!  Wait a second.  If your W-2 job offers health insurance, you don't qualify for the Line 29 deduction OR the Premium Tax Credit.

[fuzy4472]

I used the work sheet last year and the amount I had to pay towards the w-2's insurance was more than the percentage of my income so I qualified for the healthcare ins.

[TaxGuyBill]

Worksheet?  I'm not familiar with any worksheet that deals with that.  Do you know where that was?
Did you use the LOWEST cost for ONLY you (not dependents or family coverage)?
Did you use 9.56% (don't use 8.05%) of your total income (MAGI)?

Unless you have some losses (rental losses, loss in your business, etc.), it is extremely rare that you would qualify for the Premium Tax Credit.  That is because most employers are subject to very large fines if the cost is over 9.56% of your W-2.

In the event you actually do qualify for the Premium Tax Credit, you still don't qualify for the Self Employed Health Insurance deduction on Line 29.