I am self employed and under estimated my AGI. I need to pay back the excess advance premium tax credits. Can I deduct this excess credit as a business expense?

[Threshkin]

I deduced my portion of the health insurance premium as a business expense.  If I had correctly estimated my AGI I would have paid a larger premium and deducted this larger expense.  I run the business on a cash basis.

Should i deduct this additional expense from my 2018 or 2018 taxes?

[MinhT · Accepted solution]

The repayment of the ACA premium tax credit is actually a part of your health insurance premiums paid and can be added to your self-employed health insurance. However, the total deduction is limited to the net profit of your self-employed business. You can deduct this expense in 2018.