Self Employment Health Expenses

[g2consulting]

When I enter my medical insurance premiums and my long-term care insurance premiums in the Expense Section of Turbo Tax, it does not appear to reduce my self-employment income at the bottom of the page.   The bottom of the page recognizes my other expenses like office, supplies, etc., and indicates my income has been reduced by those expense amounts but it does not include the health expense amounts in reducing my income.  Why is that?  

[rjs]

The self-employed health insurance deduction is not deducted as a business expense on Schedule C, even though TurboTax has you enter it when you are entering your business expenses. It is an adjustment to income on Schedule 1, line 17. It reduces your Adjusted Gross Income (AGI) but it does not reduce your net self-employment income.

[MinhT1]

Although you enter your health insurance and long-term care premiums in the expense section of your Schedule C, they don't appear on Schedule C.

They are transferred to Part II line 17 of Schedule 1 of form 1040 (self-employed health insurance deduction) as an above-the-line deduction which lowers your taxable income.

The deduction is limited to the amount of net income (profit) of your business.

[g2consulting]

I assume that is the same situation for my Long-Term Care Insurance premiums...correct?

[DawnC]

Correct.  You may be able to deduct medical, dental, and long-term care insurance premiums for yourself, your spouse, and your dependents if you or your jointly-filing spouse is self-employed.

• To get this deduction, your Schedule C must show a net profit.
• The deduction amount generally can't exceed your net profit amount.
• If you (or your spouse if filing jointly) were eligible to participate in an employer's health plan during any given month—even if you declined the coverage—the premium you paid for that month can't be claimed under this deduction.
• Health insurance premiums you paid for your child, even if you aren't claiming them as a dependent, are eligible for this deduction as long as your child was age 26 or younger at the end of 2023.
• The self-employed health insurance deduction shows up on Schedule 1, line 17.