How does Turbotx calculate the "self-employed health insurance adjustment" referenced at the bottom of worksheet for Sched. 1, line 16? Turbotax rep & IRS both stumped.

[amy4595340]

Turbotax rep spent an hour researching and couldn't figure it out. The IRS rep also researched for an hour and had never heard of this adjustment and said the worksheet is not one of theirs. I'm self employed and bought insurance through the marketplace. This adjustment is higher when I don't claim my child than when I do, which seems counterintuitive and makes my AGI higher when claiming my child than when not.

[AliciaP1]

The IRS reports on the self-employed health insurance deduction:

How to figure the deduction.

Generally, you can use the worksheet in the Instructions for Form 1040 to figure your deduction. However, if any of the following apply, you must use the worksheet in chapter 6 of Pub. 535.

You have more than one source of income subject to SE tax.

You file Form 2555 (relating to foreign earned income).

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

See Form 8962 and its separate instructions and use Pub. 974 if the insurance plan established, or considered to be established, under your business was obtained through the Health Insurance Marketplace and you are claiming the premium tax credit.

You can lookup the forms or publications referenced at IRS.gov.