Problems getting Turbotax to Deduct Self Employed Health Insurance fron Net Income

[psteitz]

Turbotax 2022 won’t deduct any of my self-employed health insurance of $15,082 against my net self-employment income of $15,096 (after half of the SEP tax deduction).  Instead, it tells me under “Less Common Business Situations, Self employed Health Insurance” that the amount of $15,082 has been moved to Schedule A, where I do not want it since I need it deducted against my SE income to achieve a lower AGI and lower taxes.  I cannot find a way to fix this.  I have no self-employed retirement contribution (e.g. 401K) reductions against my income.  Apparently, the program thinks I have no net self-employment income.  It seems to be locked into this result and won’t let me change it.  How can I fix that? My insurance premiums are straightforward.  They are not associated with the affordable care act and do not involve a 1095.

 I am running the 2022 tax program on an estimated basis for my 2023 taxes, but it should still work correctly.

[VolvoGirl]

It doesn't go directly on Schedule C but it will reduce your AGI.  Do you have enough Net Profit?

Self-employed health insurance deduction goes on Form 1040 Schedule 1 line 17 then to 1040 line 10, 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 17 and the remainder gets added in to medical expenses on Schedule A.

[VolvoGirl]

If your Net Profit is not showing up, be sure the Schedule C and insurance are both assigned to the same person.  

[psteitz]

Thank you for the response VolvoGirl.  I do have enough profit from my business to allow the SE health insurance deduction.  In fact, right after I posted this I discovered the problem.  I went to Schedule C, Health and Long Term Care Deduction Work Sheet, and found under B that it showed  a $45,000 401K contribution amount.  This amount erased my SE income in TT and prevented the SE health insurance from being applied.  This $45,000 401K contribution was apparently a left over from when I had been earlier doing some "what if" analysis using the program.  Once I zeroed this out, since I do no plan to make a 401K contribution this year, the correct amount of SE health insurance appeared on Line 17 of Schedule 1.  Problem solved.  I would note that the 401K contribution should have gone away when I reduced my SE retirement contribution to zero under Less Common Business Situations, but for some reason it did not.