Self-Employed Health Insurance Deduction vs. form 1095-A entries

NOTE:  I submitted this query in 2016.  It's no longer relevant as the process with TurboTax has changed.  Read on if you wish, but no need to come to my rescue as the issue is no longer an issue.

Please if you will, what's changed?  I am also self-employed.  I purchase my health insurance through the Exchange even though I don't qualify for a subsidy.  It doesn't appear as though TurboTax is automatically including my premiums from the 1095-A to the Self-Employed health insurance section.

Turbotax called me last week saying that there is a whole team working on this issue (bug). Hopefully I will hear back with a solution to the problem soon.

24x, thank you!

Is there any update on this bug? Having the same issue!

domokun, it DID eventually work.  (I think).   I just had to make sure I checked the box, "Self Employed and bought a Marketplace plan" in the Schedule A.  In addition I clicked on my specific business in the"Income from my business or self-employment" part.  This transferred my premiums to the Self-Employed Health Insurance Premiums.

Go to the Personal Section then Health Insurance.  Answer the questions and you'll come upon the parts I mentioned above.

I got it! Thank you.

I've entered the 1095-A and linked it to our S-Corp as per the comments in this thread, but the difference between premiums paid and the premium tax credit are flowing to my Schedule A as an itemized deduction rather than 1040 Line 29 Self-employed health insurance deduction. I even deleted the 1095-A, re-entered it, and linked it to the S-Corp, but am getting the same results. Is there a way to force the premium difference over to 1040 Line 29? Or, is there something I'm missing that's causing them to flow to Schedule A? Looking for ideas.

Turbo tax people told be that there was a whole team working on this 'bug'. That was well over a month ago. I am sorry to hear that they have not fixed the problem yet! Meantime, I manually adjusted most of the entries on  my tax return to get the full premium deduction as I am supposed to. It was a huge pain! I think this problem is only happening when AGI minus Heath Insurance Premiums are less than the Obama Care threshold for AGI. In other words if the AGI exceeds the threshold by the amount of the Health Insurance Premiums Paid then the full deduction is showing up on 1040 line 29 as it should (at least it was in my case).

Thank you for your quick reply!

I need to make a correction, because I found a box that should have been checked, but wasn't. It's on the  Other Situations screen of the K-1 entry sequence. It reads:

"I personally paid health insurance and/or long-term care insurance premiums for myself and my family and this S corporation paid me wages."

Check it, and follow the instructions carefully. Premiums don't go in this section if you reported them on a 1095-A, but W-2 wages do. Once this section was filled out properly, the app put the correct amount on 1040 Line 29.

Well, I am afraid that this part  - the Health Insurance through the marketplace - of my taxes will still have some sort of error. Even though it is not producing an error message, I think My health insurance payments should have/ could have  gone to schedule C as self employed, and they went to schedule A, where I did not expect to see anything, anyway, becasue usually my medical expenses ( which may be painful expense for me 🙂 aren't enough to matter so that section comes out as a zero anyway. MY problem was  partly that I qualified at the end of the year for a medicaid ( free) plan because my family income was so low . This mid year change was never reflected on that 1095A form. The state sent a corrected 1095B form but there was no option to combine the information to show the real, correct information. First of all - the forms didn't match up, and turbo tax seems to totally skip the 1095B. I suppose the  state and federal government dosen't ask for those "B "forms because they are already keeping track ...?...... Once I made it though the sequence without owing additional money, I left the entries alone. I think these tips like yours need to be part of the pop up help! it is frustrating to click on help and get no help!

People like you and I (Self Employed People who does not have a choice other than the Obama Care - the biggest disaster ever) is a very small part of the US tax payer population. I guess Turbo Tax does not want to spend the resources on fixing issues that effects a small population. I call it irresponsible!

Actually, it does work once that box is checked and all questions are answered properly. I am thankful for that.

Lucky you! I guess it works if you have a S-Corp and Other Situation screen of the K-1 entry sequence is part of the process. I have an LLC and I don't deal with K-1 stuff so it does not work for me.

You would think they could apply that section to all of the scenarios listed in the IRS instructions. There are several, and S-Corps are even toward the bottom of the list. Maybe Intuit needs some more prodding!

I saw a comment above that we are a very small segment of the population?  (Those who are getting 1095A forms)  NO EXCUSE!!   I guess my particular situation is not very many people at all..... that's proably true.  I had some subsidy AND a conflict with the 1095 B that shows some of the same months as being covered... and now- there's a refund from Anthem? ( april 2018 re 2017 actual premium paid) OMG it is messy and Turbo Tax  is not helping.

You are correct to enter the health insurance premium information from your 1095-A in the Personal > Health Insurance section in TurboTax.  This is information will be used in Form 8962 to determine any adjustment needed in the premium tax credit your received.  Form 8962 Line 26 will show the resulting over/under tax credit and be transfered to your 1040 Line 69.

Since you self-employed, you are also permitted to deduct your portion of the health insurance premiums (total premium minus the premium tax credit your are permitted) as a business expenses.  TurboTax will compute this amount and enter it on 1040 Line 29.  If no amount amount is showing up on 1040 Line 29, go through the Personal >Health Insurance section again making sure to answer the question about being self-employed AND selecting the Schedule C to which you want to attach the deduction.  When you are stepping through the questions, you have to click on "edit" when you get to the 1095-A data screen.  The self-employment question is on the page after you have reviewed your 1095-a entries. 

Thanks for taking the time to answer my question.  I just spoke with someone at TurboTax who also confirmed this.  

Like you wrote, the idea is to just enter my info in the 1095-A section (Personal > Health Insurance) and TurboTax  ("knowing" that I'm filing as a self-employed business) automatically transferred that info correctly into the appropriate line on form 1040 (line 29) for the Self-employed health insurance deduction.

Mystery solved.  Of course it makes sense, and there were even instructions, but I wanted to make sure.

It is important to not enter the health insurance premiums on the Schedule C if you are going to enter it on the 1095 A.  I went back and tried it and now it gives a correct answer.  The Schedule C step by step needs to be clearer on this point, if you have a 1095, do not enter the health insurance premium paid on the Schedule C (it comes first in the interview process). Mystery and bug solved.

Right on, brother (or sister, whatever the case may be).
  
I agree about the possible benefit of additional clarity in the instructions.  

For example, TurboTax might tell a user who is in that Sch C section, if s/he has paid premiums to a plan acquired in the marketplace (and who has a 1095-A form) to FIRST go to the section Personal > Health Insurance and enter the info THERE.  And to be assured that TurboTax will automatically transfer an appropriate calculation based on those figures to the section on form 1040 for the self-employed health insurance deduction.  And only to enter that info in the Schedule C section if nothing has been transferred.  Or something like that.

Thanks for adding your input to this issue.

This is all helpful.  I completed the 1095-A and indicated that the insurance is connected to my Schedule C.  My issue is that the deduction that is being calculated on Line 29 is less than I would expect.  I have sufficient Schedule C income to be able to deduct 100% of my health insurance but only about 25% of the cost is flowing through to Line 29.  Anyone have ideas what I might be missing?

Same thing on my return. I think the premium tax credit you receive is deducted from the total premiums paid and the difference is allowed as the line 29 deduction.  See the original answer by buck1400 at the top of this string.

Yes, that is how it works but, in my case, I am not getting any credit but the Line 29 deduction is still being reduced…

i have no idea. Check the figures you entered. You should be able to deduct health ins premiums on line 29 up to the total of Schedule C minus the deductible SE tax.
What does the line 29 worksheet say in the comments section?