Why is my business tax deduction limited?

[dcx]

I am using TurboTax 24 to do what if for 2025. My business income in 2025 is $8958. The deductible SE tax is $633 and I have $1980 in health insurance premiums, which I enter as a business expense. These are my only business deductions. TurboTax says my Schedule 1 health insurance deduction is $1575. Why is the health insurance deduction  limited?

[Bsch4477]

Look at form 7206. 

[dcx]

There is no Form 7206 in TurboTax 24, it's new for 2025. I looked for a worksheet in TT24 that might explain the calculation but couldn't find any.

[AmeliesUncle]

Is the health insurance through the Healthcare Marketplace on a Form 1095-A?

Did you have employer retirement plans, such as a SEP, SIMPLE or 401k?

[dcx]

The health insurance is Medicare. I enter the number directly. I have a SIMPLE, but no matter what I enter for SIMPLE ($0, $5000 or whatever), the reported deduction doesn't change. Unfortunately the TT25 business section won't be released until February.

[VolvoGirl]

Did the rest of medical ins go to Schedule A as an itemized deduction?   Do you get Social Security and have Medicare taken out?   I’m thinking that the $1,575 is coming from another place and is not part of the 1,980 ins you entered.   If you get SS then go back and delete the Medicare on the SSA-1099 and enter it under business. 

[dcx]

Yes, the other $405 is in the Schedule A medical deduction section, although it doesn't do me any good there because the rest of my medical expenses are too low. I did not receive Social Security benefits and paid the government directly for the Part B premium