Self Employed Health Insurance Deduction

[jsevcik]

On the Schedule C Health Insurance Deduction, am I able to enter premiums paid here as well as on Schedule A as an itemized deduction?  Or is it a one or another scenario?

[VolvoGirl]

Only enter it in one place.  Self Employed health Insurance does not go directly on Schedule C so it will not reduce your Net Profit or self employment tax.

If your health ins exceeds your net self-employment income it gets split. An amount equal to your net self-employment income goes on Form 1040 Schedule 1 line 16 and the remainder gets added in to medical expenses on Schedule A.

[jsevcik]

Okay, great, thanks.  This is very helpful and makes perfect sense.  Quick follow-up question:  Does it matter where I enter it (which form)?

[VolvoGirl · Accepted solution]

Yes enter it under self employment.  Where to enter Self Employed Health Ins

https://ttlc.intuit.com/community/entering-importing/help/where-do-i-enter-my-health-insurance-premi...

BUT do not enter any Health Care Marketplace insurance you bought.  If you enter the 1095-A and select the "Self-employed and bought a Marketplace plan" box, it will automatically include those premiums in the SE Health Insurance section.  So you shouldn't enter it again on schedule C.

Do you get any Social Security?  Medicare plan B payments are qualified as Self-employed medical insurance premiums and should be entered under Business instead of in the Social Security Benefits entry area.  So go back and take it off your SSA-1099 entry.

[jsevcik]

One last question on this topic.  I don't have an ACA plan and I'm not getting Social Security.  Does the health/medical plan need to be set up specifically for my consulting business, or does it qualify just by being the medical plan I have while being self-employed?  Does the fact that I'm self employed qualify the plan?

[VolvoGirl · Accepted solution]

Self-employed health insurance policies must be in the name of the business.  Sole Proprietors can meet this requirement if the policy is in their name. 

COBRA policies are in the name of the former employer and do not qualify for the self employment health insurance deduction.

[natural-52]

On mine I entered my Medicare payments I make yet instead of a deduction or showing a s negative amount the total comes up under income as a positive amount???

[Vanessa A]

Which line are you seeing your Medicare payments as an addition to income?  You should see the amount you entered for Medicare premiums on line 17 of your Schedule 1 which is then reflected on line 10 of your 1040 as a deduction from income. If you are not seeing it there, there may be two reasons.  One, you do not have a profit showing so you are not eligible for this deduction or two, it is not entered in the correct spot.

If you do have profit, please take the following steps to be sure it is entered in the correct spot and then delete the old entry. 

• Click Income and Expenses
• Click Review next to Self-Employment Income and expenses
• Click Review next to your business
• Click add next to Health Insurance Premiums.  You may have to scroll down and click show more a few times.
• Click continue a few times, then you will come to a list of expenses that you can enter.  Click Start or edit next to Health Insurance Premiums then walk through the steps to enter your premiums.  This will enter your deductible Medicare premiums on line 17 of Schedule 1.