Self employed health insurance deduction

[Getoffmyback]

I entered $ 1,650 as self employed health insurance premium ( this is for a family member ) . I myself had a ACA plan and I had a form 1095-A which I entered separately .  On the medical  deduction worksheet it showed the portion of the premium that I paid as $ 5  and also the other premium of $ 1,650 . I take the standard deduction . On schedule 1 , line 17 it shows an amount of $ 1,645 . It seems that this is a calculation error and it should be $1,655 . I don't care about the $ 10 difference , but I heard that people had their efiling rejected because of errors like this .

[ThomasM125]

The self-employed health insurance deduction can be limited by your premium tax credit that is associated with your marketplace health insurance plan. So it is not unusual for the deduction on line 17 to be less than what you paid for health insurance premiums. When you entered your form 1095-A there was a screen that said Let us know if any of these situations apply to you, and one of the options was I'm self-employed and bought a Market plan. You should have checked that option and on the following screen linked the marketplace insurance premiums to your business in order to report your self-employed health insurance expense. For the medical deduction, you can deduct the portion of insurance premiums not deducted as self-employed health insurance premiums.

If you followed those steps, then your insurance premiums should be correctly stated.

[Getoffmyback]

I did all the steps that you outlined . On the work sheet for medical expenses for schedule A  line 2 b , it shows " taxpayer portion of 1095-A premiums" as   $ 5 ; this should be added and not subtracted from my deduction, right ?  I think it is a Turbotax software computing problem . Will it prevent my return from being accepted ?

[ThomasM125]

Line 2(b) would be the ACA insurance premiums that were not used for the premium tax credit or self-employed heath insurance deduction. It would normally be a small amount. Since the premium tax credit adjustment could be positive or negative it is possible that this figure could be an addition or subtraction.

For practical purposes, you probably don't have an allowable medical deduction since the self-employed health insurance deduction and premium tax credit probably used up most of your insurance premiums. Also, the medical deduction has to be over 7.5% or your adjusted gross income to be allowable. So, it is doubtful the $5 entry will impact your tax or the processing of your tax return.