I am self employed and on medicare. I want to deduct medicare parts B,C & D on line 29, form 1040. The only way I found to do this was to override line 29. Now I cannot E-file. How do I fix this problem?
You will not be able to e-file if you have an Override on your income tax return. Delete what you've entered and see the instructions below.
TurboTax will automatically take the difference not allowed per your Schedule C and carry it to your Schedule A, Itemized Deductions.
TurboTax will check to see if you qualify for one or both of the deductions after you enter your premiums in the self-employed business expense section or the Health Insurance section if you received a 1095-A.
To enter your health insurance premiums, including Medicare, in the self-employed section of TurboTax:
- Type self-employed health insurance deduction in the search bar.
- Click Jump to self-employed health insurance deduction. See the screenshot below.
- Continue the onscreen interview until you get to the Enter Your Business Expenses, choose Self-Employed Health Insurance Premiums.
Self-employed health insurance deduction, Form 1040, line 29
- The deduction is generally limited to your net profit from your self-employment (or your self-employed earnings as a partner or your paid wages as a shareholder in an S corporation).
- You can't include premiums for any month you were also eligible to participate in any subsidized health plan maintained by any employer of you, your spouse, your dependent or your child who was under age 27 at the end of the tax year.
- Your child (under age 27 at the end of the tax year) can be included even if they aren’t your dependent.
Medical and Dental Expenses on Schedule A, Itemized Deductions
- Premium amount is reduced by any self-employed health insurance deduction you claimed.
- You can't deduct insurance premiums paid with pretax or tax-free dollars.
I.have problem. Turbotax allowing medical insurance premium deduction as it should for self-employed but also takes same mefical premium deduction on itemized deductions (Schudule A medical expense area).
Override corrects problem but not sure I can e-file with override in place? Even if I can, is it an audit risk? HELP!
How are you entering it? Only enter it once under self employment. Don't enter it again under Deductions. It's possible for some to show up on schedule A too. Is it from a Marketplace plan?
If you enter the 1095-A and select the "Self-employed and bought a Marketplace plan" box, it will automatically include those premiums in the SE Health Insurance section. So you shouldn't enter it again on schedule C.
Self-employed health insurance deduction goes on Form 1040 schedule 1 line 16, as long as the expense is not greater than your net self-employment income. If it does exceed your net self-employment income it gets split automatically. An amount equal to your net self-employment income goes on Form 1040 Schedule 1 line 16, and the remainder gets added in to medical expenses on Schedule A.
Medicare plan B payments are qualified as Self-employed medical insurance premiums and should be entered under Business instead of in the Social Security Benefits entry area. So go back and take it off your SSA-1099 entry.