We have no employer-sponsored plans available; COBRA continuation was exhausted.
Self-employment income exceeds the premiums paid.
No subsidy on the marketplace purchased plan; we paid full freight on the premiums.
Yes, your wife's health insurance premiums are deductible as a business expense.
Here's how to report that business expense:
As a self-employed person, you're allowed to deduct premiums up to the amount of your net business income; the premiums will appear on Line 29 of your Form 1040. Any payments that exceed your net business income will flow over to Schedule A as a personal medical expense. We'll automatically handle the line items and calculations for you.
Thanks for the answer, TurboTaxRichardG.
The Box next to the Self-Employed Health Insurance Premiums line in Other Expenses for the business just wants me to type in a number; it doesn't have a start or update button.
The Learn More link for that item states "Do not include health insurance purchased through a Health Insurance Marketplace (also known as an exchange). These premiums are entered on Form 1095-A in the program."
At the bottom of Form 1095-A (forms view) is the Business Related Premiums Information Smart Worksheet box, where my wife's Sched. C business is selected. By "related", do they mean "apply these premiums against this income"? If so, we're good! We would have purchased the coverage regardless of having the business income or not, and I'm a bit unsure about the meaning of "related" here.
If you are reporting your premiums under the Health Insurance tab, do not report the premiums under business deductions. Yes, click next to schedule C and select your wife's business to link the two forms.
Is one place better than another or does it matter? I have form 1095-A and have placed it in the Health Insurance tab.
thanks
@sdmmktg5 wrote:
Is one place better than another or does it matter? I have form 1095-A and have placed it in the Health Insurance tab.
thanks
To enter your Form 1095-A -
Or enter 1095-a in the Search box located in the upper right of the program screen. Click on Jump to 1095-a