If I'm self-employed, can I deduct my 2017 Obamacare health insurance premiums for 2017's tax return?

[LindaA · Accepted solution]

Yes. If you have self-employment income that you used to pay for Obamacare, you may deduct your out-of-pocket premiums. TurboTax will take care of the deduction for you when you enter the Form 1095-A for your Obamacare coverage and link the form to your business. This is done during the Health Insurance interview when TurboTax asks, Do any of these situations apply? You'll need to check Self-employed and bought a Marketplace plan, then select the business that is tied to the policy. (Click the screenshot below to enlarge it for reference.) Click the Learn more link on that screen for additional information.

Note: This is the only place in TurboTax where you should enter your Obamacare information. You don't need to include it with your business expenses. 

[rubicon0116]

Thanks for the response! Unfortunately, I already did the health insurance interview and can't access the question in your attachment. Is there any way I can go back to answer this question and link it to my business if I already did the Health Insurance interview?

[LindaA]

You could try going back into the health insurance interview and advancing until you get to the "Here's what we have for your 1095-As" screen. Then click Edit next to the policy number. You'll be asked to review the 1095-A info, so if it is okay just scroll down to the bottom of the screen then click Continue. The next screen should ask "Do any of these situations apply?" You should be able to link to the 1095-A to the business from here.

[rubicon0116]

I was able to get back and find the question in your screenshot. Thank you so much for your prompt and knowledgeable response to this question!

[LindaA]

You are very welcome.

[Lmax]

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[Lmax]

I have a similar question regarding the deductibility of premiums paid in 2018.  I am self employed and operate on a cash basis.  I am accustomed to being able to deduct health insurance premiums on my Schedule C.  But this year I made three premium payments to a state exchange.  One of these payments was made December 26, 2018 for coverage effective January 1, 2019.  When I am in turbotax and filling out information connected with self-employment, the interview tells me not to enter the information there, but to enter the 1095-A information.  The problem is, the 1095-A deals with COVERAGE, not premium payments.  So it correctly states that my family had COVERAGE during November and December, but it omits the fact that I made a premium payment on December 26, 2018.  Ordinarily a business can deduct that payment.  But the 1095-A makes no mention of it, and I can see no other way to enter it.