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

[bethandsusan]

The final answer I got after several extended conversations with tech support is that Turbotax cannot properly handle health insurance for self-employed individuals that was purchased through the Marketplace.  (At least, as in my case, when the AGI is over the limit to receive any premium tax credit.)  The advice I was given was to (contrary to instructions) delete the entries on 1095-A and enter the health insurance expense on the Schedule C (as if the insurance wasn't purchased through the Marketplace).  The rep suggested that I print the Form 8962 before deleting the 1095-A entries in case the IRS contacted me for it!  I filed as directed but this is an unsatisfactory solution in my opinion.  I hope Turbotax fixes this deficiency before the next filing season.

[cmdv]

I agree with bethandsusan That this is an UNSATISFACTORY situation in that turbo tax can't manage the health care  portion ESPECIALLY for those who are self employed! THIS is why we have spent the big bucks for the version that is supposed to be able to manage all sorts of situations. With the time wasted trying to get the program to work / devise some sort of work around/ redo the form. search through others' questions and answers/ time on the phone / fees for state download/ and fees for filing etc etc the money spent it is really getting close to the price of a CPA/ accountant/ tax advisor.  A couple of years ago my whole return was out of whack because of a glitch with the charitable donations. Another year I had insufficient information about how/where/ when to report a NOL. ( forget how to calculate a NOL!) If one year is screwy then you are at least somewhat mixed up for the following year.  Another ongoing problem is Keeping track of what they are asking for especially if TWO Schedule C businesses. AND Some times the pop-up click-on help links do not address my question at all. A basic improvement would be to be to have the program tell you where the data is going to appear on the standard form(s).  And back to the health section. one of the forms says "refer to the instructions" which are not on turbotax at all; nor is there a convenient link.  I had to do an IRS search to find the instructions.

[Sharibob]

Additionally, after completing form 8962 I discovered I had to repay $2500 of prepaid tax credits. This did not show up on my Schedule C therefore nor line 29 of my 1040. I just realized this would have reduced my federal taxes by $718 so I'm going to file an amended return. Wish I would have discovered this before filing!!

[tbrosz]

I am working on 2016 taxes as of January 28, 2017. I was in a Marketplace plan through most of 2016, and self-employed. I entered the 1095-A and checked the box for applying it to my Schedule C.

However, the number showing up on line 29 of the 1040 is higher than I expected. I paid around $7,000 in premiums in 2016 out of my own pocket (the actual premium cost minus the subsidy), but the amount showing up on line 29 is over $13,000. I have no idea where this number comes from.

Does this function still need an update?

[mrpooh]

I don't think it needs an update.  I found that the figure on line 29 was different than what I actually paid, but not by much.  I think the difference reflected credits given to me by my State.  

If you received a 1095-A, were there figures in Part III, columns A, B, and C?  I had figures in all of those columns.  Did you enter the info from all columns for all months when prompted in Turbotax?

[tuckerdognc]

The figure that shows up for me, on Line 29 doesn't add up to the total out of pocket amount I actually paid in premiums. The amount on Line 29 is the amount showing I have to pay back through my taxes (as I underestimated income due to having to pay for food and electricity). The actual amount I paid in premiums is $3184.20. The amount on Line 29 is $2550. The current amount that is showing on the 1040 is $2673. UPDATE: I just went back, looked at everything and where the question states: "Was anyone enrolled in any of these less common plans and the list is
-Obamacare
-Healthcare.gov plan
-HeathCare.gov
-Aplan that sent or will senda 1095-A
-Another state's marketplace plan

and the answer is Yes, or No? Huh? One of us has Medicare. I have the Affordable Care Act (aka Obamacare). How are both of these "less common."

So, I chose "yes" because one of us is on Medicare (71). I tried "no" and that didn't seem to make a difference. Clicked done and spin spin spin ...

And, after I double checked and looked at everything, not changing a thing, I went back to 1040, and checked the "Self Employed Health Insurance Deduction" Line 29, (Also, Not sure it helps we are talking about a line 29 on 8962 AND 1040. So, where are any of these numbers coming from ? In the meantime, I guess I'll keep that one. 🙂

[mrpooh]

I don't know where the numbers come from, and how they are calculated, but I, too have found discrepancies between what I actually paid in premiums and what is calculated by TurboTax and entered on Line 29 of Form 1040.  I have decided not to concern myself with the difference.  Perhaps there's some other factor that goes into the calculation.  If you are concerned, I'd ask to speak with a TurboTax specialist.  There are different levels of help and I have found the folks on the more expert level to be super helpful as well as patient and kind.  If the first person can't help, ask for your case to be escalated to a different department.  Good luck!

[josephbhunt]

The Personal section doesn't have any health insurance info now. There is a Health Insurance premiums  section under Self-Employed business expenses, but it tells you not to include any premiums from HealthCare.gov. Then the other Health Insurance section (on the same level as Income, Deductions, etc) doesn't deduct your premiums from your income. What do I do?

[VolvoGirl]

You only enter it from the 1095-A.  If you enter the 1095-A and select the "Self-employed and bought a Marketplace plan" box, it will automatically include those premiums in the SE Health Insurance section.  So you shouldn't enter it again on schedule C.  

You enter the 109A under the separate Health tab, not the Deductions & Credits Tab.

[josephbhunt]

Thanks VolvoGirl! I'll give it a shot.

[mkctt]

Having trouble getting our 1095-A to link to our schedule C.  Have gone through the steps VolvoGirl outlined, and even doing this, no deduction for premiums shows up.  The only thing that seems to change is in the personal Medical Expense Worksheet, it shows a reduced amount for the health insurance premiums (I believe exactly matching the amount of the premiums we should be able to deduct on schedule C).  Seems like there is still a bug.

[VolvoGirl]

It doesn’t actually go on schedule C.  Self-employed health insurance deduction goes on Form 1040 line 29, 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 line 29, and the remainder gets added in to medical expenses on Schedule A.

[mkctt]

Thanks VolvoGirl - when I first input everything, it wasn't showing up on 1040 line 29, either (just the reduced Medical Expense Worksheet number).  However, since saving/exiting and going back in, it now shows up.  Weird, but all is now well.  Thanks!

[24x]

I am doing my 2017 taxes. Turbotax is still doing this wrong: I paid over $13000 for health insurance premiums. Schedule 1095A shows this amount and $0 premium tax credits. 1095A also shows that Schedule C for my business is LINKED. I am seeing only about $600 in line 29 as SE Health Insurance Deduction. AGI is about $83000 (well over the threshold to qualify for any Premium Tax Credits). I shared this with Turbotax people. They got back to me saying that 'the calculations are correct'. Now, what do I do? Complain to IRS? Or, do I get a lawyer?

[VolvoGirl]

@24x  what is on line 12 for your net profit on schedule C?  Did the rest of it go to Schedule A Itemized Deductions ?