Self-employed Health Insurance through Healthcare.gov

[nearlyanonymous]

I'm self employed and contract for my health insurance through Healthcare.gov.

Under Business Income and Expenses (Schedule C: Insurance -- Health) in TurboTax Home & Business is the prompt: Enter Health Insurance Premiums. Directions say, "Enter the total amount of health insurance premiums you paid for yourself...," etc. At the end, a note says, "Do not enter premiums you paid for your employees or paid through Healthcare.gov or your state market place or exchange."

Does that mean people like me who "contract' their insurance plan through Healthcare.gov should not enter the premiums in that section? If so, that is very poor and confusing wording. I don't know if some people "pay" their premiums through healthcare.gov. However, I do know that I "pay" mine directly "to" Independence Blue Cross. So, what exactly is meant by that particular "Do not enter..." text in the program?

If it means I shouldn't enter my premiums there, TurboTax really ought to reword that to make it unambiguous. Any program should strive to be user-friendly, and ambiguous language is a surefire sign of  user-UNfriendliness.

[ColeenD3]

If you receive a Form 1095-A, enter your information in the screens in that section.

[nearlyanonymous]

Anyone who contracts for their health insurance through Healthcare.gov or one of the state exchanges gets a 1095-A. And I already know to enter the data from that form and where to enter it.

I just can't figure out if I also enter it in the spot I describe in my OP, above. The first year after the ACA  was in effect, we were told to enter it in two places. I remember that because it ended up in some sort of circular logic that neither TaxAct nor TurboTax knew how to handle at the time.

Therefore, I don't automatically rule out entering it in two places.

[ThomasM125]

When you enter your form 1095-A in TurboTax, you will be asked if you are self-employed and bought a Marketplace plan. Also, you will be asked what business in TurboTax the insurance applies to. That is how the Marketplace insurance is designated as self-employed health insurance, so you don't need to enter it elsewhere in the program.

If you did not purchase your insurance through the exchange, you need to enter the premiums in the business expense section. If you have insurance through the exchange, your health insurance deduction may be limited, that is why you need to enter it in the 1095-A section if that applies to you.

[nearlyanonymous]

Thanks for the reply. I've now found some guidance within the program that supports what you say, but that also avoids the easily misinterpreted phrases about paying for, or buying, or purchasing insurance through healthcare.gov or a state marketplace.

For those who want to see it themselves, it's under Business Income and Expenses.

Self-Employed Health Insurance

Self-employed health insurance must be entered under each corresponding business..."

Under that is a link labeled: What if I got insurance through Healthcare.gov or a state marketplace? That link takes you to this info:

You can deduct up to 100% of health insurance premiums for you, your spouse and your dependents if you are self-employed and have a net profit from the business for which you created the plan.

What if I got insurance through Healthcare.gov or a state Marketplace?

If you signed up for a health insurance plan through Healthcare.gov or your state Marketplace or exchange, do not enter the premium amounts you paid in this section. We'll get the details on those plan premiums in the Health Insurance section. These are included on your 1095-A, a new IRS form that you will receive from your Marketplace.

Yes! I signed up for my insurance through Healthcare.gov, but I didn't pay my premiums there.

I again want to emphasize how important it is, with program instruction (are you listening Intuit/TurboTax?) or advice here (ideally, in all language) that ambiguous terms be avoided. Even if those words are commonly used in the context of the subject at hand, replacing them with unambiguous terms provides a better chance of clear understanding. Especially when doing their taxes, no one wants to feel unsure about exactly what is meant.