Self-Employed Health Insurance Deduction Worksheet - 2020

[Subsidyhit]

My return was also REJECTED with the same message as you stated. "Updates to the Self-Employed Health and Long-Term Care Insurance Deduction Worksheet are estimated to be completed by 4/30/21."

Waiting for the software UPDATE......

[wallgeneralemail]

I ran into a similar problem and to fix it, I opened the form 1095-A in "forms" and double clicked on the business that somehow got linked on the form (look at the bottom of the form.)

After double clicking on my business, a pop-up window came up and I clicked on the REMOVE LINK button.  That fixed my problem.

[S_H_B]

I linked to my business intentionally, because the premium payments should be deductible as self-employed health insurance. The question is whether the excess advance payments need to be subtracted from the deductible amount, because they do not have to be repaid this year. Turbo tax includes that amount in the deduction, but if you remove the link, then none of the marketplace premium payments are deductible.   

[LongTimeFrustratedUser]

Thank you wallgeneralemail. You saved me from my last resort recourse on this issue, which was going to be printing out the form and whiting out the TT generated error and then recalculating all the numbers downstream that needed recalculating. I could hug you.                                                          TT, you have let me down so many, many times, caused so many headaches, lost hours of my life. 

[tcar2000]

I am self-employed. I pay for my own healthcare on the exchange. I receive no premium tax credits to help pay for the premiums.

My total healthcare premiums (regular and long-term care) equaled $14,491. That is what I entered on the Self-Employed Health and Long-Term Care Insurance Deduction Worksheet.

However, Turbotax filled in $27,559. on line 16 Schedule 1 of the Adjustments to Income section. Turbotax added the note: “A self-employed health insurance adjustment of $13068.00 from premiums paid through an exchange is included as an adjustment to income but does not appear on these worksheets.”

Adding this extra amount is incorrect, but I cannot find a way to delete the extra amount Turbotax added. How can I correct my tax returns?!

[BillM223]

Was the amount of your LTC premiums $1,423 (the difference between $14,491 and $13,068)?

If so, then on the line where you entered the $14,491, just enter the $1,423. As I recall (it's been a month or two since I looked at this), the TurboTax amount from the 8962 is added to whatever you enter.

If that doesn't work, please come back and give me the line number on the worksheet, and I see what I can do with it.

[tcar2000]

No. All of my income comes from self-employment. The amount of regular marketplace exchange healthcare premiums = $13,070. The amount of long-term healthcare premiums = $648.  I receive no premium tax credits. My self-employed income is well over the cost of my healthcare premiums. 

I get the message: "A self-employed health insurance adjustment of $13068.00 from premiums paid through an exchange is included as an adjustment to income but does not appear on these worksheets" on the Self-Employed Health and Long-Term Care 2020 Insurance Deduction Worksheet. I cannot remove this incorrect adjustment that Turbotax is adding, so Turbotax fills out line 16  Self-employed health insurance deduction with $27,559. This number is far above what I paid in premiums, so it cannot be right.

[BillM223]

@tcar2000

"No. All of my income comes from self-employment."

I didn't say otherwise, so I don't know why you said this.

"The amount of long-term healthcare premiums = $648."

Well, I was hoping for the easy solution.

"A self-employed health insurance adjustment of $13068.00 from premiums paid through an exchange is included as an adjustment to income but does not appear on these worksheets" on the Self-Employed Health and Long-Term Care 2020 Insurance Deduction Worksheet."

Yes, I have seen this message, and, no, you (as you have found out) can't adjust it directly (but there may be an indirect way - later).

"If that doesn't work, please come back and give me the line number on the worksheet, and I see what I can do with it."

I'll ask you again, please give me the form and line number that you entered the $14,491 into.

[tcar2000]

Self-Employed Health and Long-Term Care Insurance Deduction Worksheet
Line A9 - Total self-employed health and allowed long-term care insurance premiums, sum of lines A1 and A8 = $14,491

[BillM223]

So you entered in the Schedule C interview both your health insurance premiums of $13,070 and your LTC of $648? This would be under Insurance Payments under Let's Write Off Some Business Expenses.

TurboTax would add both these amounts to the $13,070 coming from the 8962. So please remove the entry of $13,070 for the health insurance from the Schedule C interview (since you can't stop the transfer from the 8962).

The thing that puzzles me is how you got $14,491 when your 8962 premiums are $13,070 and your LTC is $648. Do you see a $773 anywhere?

NOTE: you said that your health insurance premiums were $13,070 but the 8962 says $13,068, but I don't know if any limitation was applied. So don't be too concerned yet about a $2 discrepancy. Let's work through this first.

When you remove the $13,070 (or $13,068) from the Schedule C interview, what happens?

[tcar2000]

According to Healthcare.gov:

If you paid full price and are sure you don't qualify for a premium tax credit

• You don’t have to fill out or include Form 8962, Premium Tax Credit, when you file your federal taxes.
• Keep your Form 1095-A with your other tax records.

Since I'm 100% certain I didn't qualify for a premium tax credit in 2020, I've deleted form 8962, and refrained from mentioning that my plan is a marketplace plan. This fixed the problem for me. I understand that Turbotax does not recommend this, but it's the easiest way to solve my issue.

[BillM223]

Keep that reference handy, in case the IRS sends you a letter in the near future wondering where your 8962 is. I am not as confident as you that the IRS screening process that compares the list of taxpayers with Marketplace polices with taxpayers who included an 8962 is smart enough to recognize that you did not have to file an 8962. 

Of course, this year everything is up in the air, because with the American Rescue Plan eliminating the repayment of excess PTC (so the taxpayer doesn't have to file an 8962), the IRS may not notice this year. They have enough on their hands.

Good luck.

[mrbud]

I am encountering the same problem (described below) while doing my 2021 taxes.

Is this a TT bug that has not been solved since last year?

[RobertB4444]

@mrbud  When entering your own "self-employed health insurance deduction" do not include the amount from 1095-A.  TurboTax is going to enter that amount for you.  Enter any other premiums paid and the amount should be correct.