Covered California/Schedule C

Forum|Forum|1 year ago
March 10, 2025
3 replies
27 views

I have W-2 income as well as a small schedule C business. Can I deduct a portion of the Covered California premiums to wipe out my schedule C income, and then deduct the balance of the CC premiums on schedule A?

ThomasM125

Level 15

You can't use your company sponsored health insurance premiums as a self-employed health insurance deduction. You won't qualify for a self-employed health insurance premium deduction if you are eligible for a company sponsored plan with your employer. You can use the premiums you paid out of pocket as an itemized deduction if they were not subtracted from your taxable wage income, but not any premiums paid by your employer.

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mweizAuthor

Level 2

Thanks. I am covering the Covered California premiums 100% out of of pocket.

I just can't seem to get Turbo Tax to accept my health insurance premium that I input on Schedule C, so I thought maybe CC wasn't deductible.

JotikaT2

Alumni - Expert

Please see where do I enter my health insurance premiums if I'm self-employed for more guidance on how to enter this information into TurboTax.

Once you have entered the information from your 1095-A form, you'll see a screen titled "Let us know if these situations apply to you." On this screen, check the box that says I'm self-employed and bought a Marketplace plan. Proceed through the remaining screens and answer the questions as applicable.