TurboTax will automatically take the difference not allowed per your Schedule C and carry it to your Schedule A, Itemized Deductions.
TurboTax will check to see if you qualify for one or both of the deductions after you enter your premiums in the self-employed business expense section or the Health Insurance section if you received a 1095-A.
To enter self-employed Health Insurance:
- Type self-employed health insurance deduction in the search bar.
- Click Jump to self-employed health insurance deduction. See the screenshot below.
- Continue the onscreen interview until you get
to the Enter Your Business
Expenses, choose Self-Employed Health Insurance Premiums.
Self-employed health insurance deduction, Form 1040, line 29
- The deduction is generally limited to your net profit from your self-employment (or your self-employed earnings as a partner or your paid wages as a shareholder in an S corporation).
- You can't include premiums for any month you were also eligible to participate in any subsidized health plan maintained by any employer of you, your spouse, your dependent or your child who was under age 27 at the end of the tax year.
- Your child (under age 27 at the end of the tax year) can be included even if they aren’t your dependent.
Medical and Dental Expenses on Schedule A, Itemized Deductions
- Premium amount is reduced by any self-employed health insurance deduction you claimed.
- You can't deduct insurance premiums paid with pretax or tax-free dollars.
