Self-Employed Health Insurance Deduction

[Scubelize]

Approaching retirement I am still  earning about 10K as a corporate trainer.  This income is reported as self employed business income from a 1099-NEC .   When I record approx. 5K  of business expenses against the income for Self-Employed Health Insurance Premiums it has zero effect on the net income.  If I test any other field on the business expenses (Legal fees, Business insurance, etc.), it works as expected decreasing the net income.  It feels like a bug since I have more than enough income to offset the expense.  Why does this field not work as expected?

[VolvoGirl]

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 17 (to 1040 line 10) and the remainder gets added in to medical expenses on Schedule A.

[MinhT1]

The Self-employed Health deduction doesn't reduce your business net income on Schedule C, but is transferred to line 17 of Schedule 1 of form 1040 and reduces your taxable income.

In TurboTax Premium Online, you enter your health insurance premiums in the Business Expenses section of your business.

The deduction is limited to the amount of net income (profit) of your business.

Go to Business Expenses > Other Common Business Expenses > Health Insurance Premiums.

TurboTax will transfer the amount to Part II line 17 of Schedule 1 of form 1040 (self-employed health insurance deduction).

[Bsch4477]

That’s because the self employed insurance premium deduction doesn’t reduce your business income. Instead it reduces your AGI through an adjustment. Look at your Schedule 1 line 17.