My Health Insurance Premiums do not seem to be deducting as an expense from my AGI. They equaled 1467.12, and I was self-employed.

[VolvoGirl]

Do you have a profit on schedule C? Self-employed health insurance deduction goes on Form 1040 line 29, 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 line 29, and the remainder gets added in to medical expenses on Schedule A.

[cstan22]

Yes, I have a profit in schedule C, and it's higher than the health insurance premium deduction. I'm entering the health insurance premium amount into the Income & Expenses section, but it doesn't seem to have an impact on anything. I can delete the expense or crank it up to $20k, and it doesn't affect my tax return amount. Also, it doesn't appear on line 29. Am I entering it in the wrong place?

[VolvoGirl]

Try here,
Go to
Business tab-Continue
Choose Jump to Full List -or I'll choose what I work on

Then…..
Business Income and Expenses - Click the Start or Update button
 
Then click EDIT by the business name and the next screen should be a list of  topics,
Business Profile, Income, Inventory/Cost of Goods Sold, Expenses, Assets, and Final Details last.
 
Under Business Expenses, Click Start or Update by Other common business expenses
Then click Update by Insurance Payments
Then click Update by Health Insurance Premiums

[cstan22]

I'm using the online Self-Employed tool, and I don't think I have that track. I think the problem is that I'm also claiming the Foreign Income Exclusion plan, which means I'm not reliable for any regular federal taxes (still reliable for self-employment). I thought I'd still be able to count my insurance premiums as an expense, so that it would lower my overall AGI and as such, my overall self-employment tax, but I guess it won't let me deduct the insurance premiums given my use of the Foreign Income Exclusion plan?

[VolvoGirl]

Oh sorry I don't know how the foreign stuff works.

[TaxGuyBill · Accepted solution]

If all of your profit from the business was excluded from the Foreign Earned Income Exclusion, that also means you have 'no profit' for purposes of the Self Employed Health Insurance deduction.  See Line 12 on the worksheet:

https://www.irs.gov/pub/irs-pdf/p535.pdf#page=20