Schedule 1 line 17

[midpitts]

How is self employed health insurance deduction calculated on the schedule 1 line 17?  It is showing only $738 when I paid $3572 in premiums as a sole proprietor through the exchange .  How do I change this information on the schedule 1 form?  

[Critter-3]

The deduction is limited to the Sch C income less 1/2 of the SE taxes and is also reduced by any PTC allowed on line 9 of the Sch 3. 

[midpitts]

Thanks for the explanation.  Can I just deduct it on the schedule c instead so I get the whole amount I paid?

[VolvoGirl]

No.

[VolvoGirl]

See Schedule C instructions page 7&8 for line 14.  You can only deduct Insurance for employees.

https://www.irs.gov/pub/irs-pdf/i1040sc.pdf

Do not include on line 14 any contributions you made on your behalf as a self-employed person to an accident and health plan. However, you may be able to deduct on Schedule 1 (Form 1040), line 17, the amount you paid for health insurance on behalf of yourself, your spouse, and dependents, even if you do not itemize your deductions. See the in- structions for Schedule 1 (Form 1040), line 17, for details.

[midpitts]

I am still confused a bit.   So the income is $103,885, 1/2 SE tax is $7339 and the PTC is $2132.   I can't figure out how the $3572 I paid in premiums reduced to $738.   

Also, on a side note:  I paid $335 for a dental plan that wasn't through the exchange.  Where do I enter this expense?

[JohnW152]

There’s a standard worksheet that’s used in the computation, but it’s possible that there’s a different computation working for you.

According to Exceptions under Line 17, Self-Employed Health Insurance Deduction in 2021 Instruction 1040: 

Use Pub. 535 instead of the Self-Employed Health Insurance Deduction Worksheet in these instructions to figure your deduction if any of the following applies. 

• You had more than one source of income subject to self-employment tax. 

• You file Form 2555. 

• You are using amounts paid for qualified long-term care insurance to figure the deduction. 

Use Pub. 974 instead of the worksheet in these instructions if the insurance plan was considered to be established under your business and was obtained through the Marketplace, and advance payments of the premium tax credit were made or you are claiming the premium tax credit. 

See 2021 Publication 535 for more information.

Is the dental insurance expense personal or business-related?

[midpitts]

I am still confused a bit.   So the income is $103,885, 1/2 SE tax is $7339 and the PTC is $2132.   I can't figure out how the $3572 I paid in premiums reduced to $738.   

Also, on a side note:  I paid $335 for a dental plan that wasn't through the exchange.  Where do I enter this expense?

SORRY, THIS WAS SENT AT THE SAME TIME SOMEONE WAS REPLYING.

[midpitts]

Thanks  John.  I don't remember a spot on my tax forms where I entered the amount I paid for my premiums.    Just the info on the 8962.  Is there a place where I should put this info on my forms. 

I am paying my dental as part of my sole proprietor business expense.

is there a way to override what is on line 17?  control D isn't working.

[midpitts · Accepted solution]

found it!!!!   there is a form called Health LTC Works in  Turbotax home and business where you enter this info.  Line 1.

[terroirmalibu]

I'm having trouble finding that. Can you please be more specific? Thank you!

[midpitts]

You have to click on the forms version rather that the step by step.  Once you do that there is a form called Health LTC Works in  Turbotax home and business where you enter this info.  Line 1.

[midpitts]

You should find the form option on the top right.

[ameairs01]

How is the number in schedule 1 line number 17 calculated, titled self-employed health insurance deduction?

Thanks?

[JulieS]

The amount that is allowed for the self-employed insurance deduction is 100% of your health insurance premiums, but limited to:

• Your net profit on Schedule C ,reduced by 1/2 of your self-employment tax and any Premium Tax Credit allowed on Schedule 3, line 9.
• If you are a more than 2% shareholder in an S-corporation, the deduction is limited to you gross wages on Form W-2 and reduced by any Premium Tax Credit allowed on Schedule 3, line 9.
• If you are a partner in a partnership, it is limited to your income subject to self-employment tax and reduced by any Premium Tax Credit allowed on Schedule 3, line 9.