self-employed health insurance deduction

Forum|Forum|10 months ago
July 15, 2025
2 replies
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I am a sole proprietor who purchased health insurance through the ACA. I received tax credits, so needed to complete Form 8962. I also completed Form 7206 to determine how much of the premiums I paid could be deducted. It appears Turbo Tax adds both the amount from Form 7206, Line 14 (allowed deduction) AND what I think is the iterative calculated amount from Form 8962 together on Schedule 1, Line 17.

So, I paid $10,760 in premiums in 2024. If I only complete form 8962, TT appears to perform the iterative calculations and results in $9,408 automatically input into Schedule 1, Line 17. However, if I then complete Form 7206, TT then adds the amount from Line 14 (allowed deduction), resulting in $21,513 automatically input in Schedule 1, Line 17.

Why is this happening and what should I do to correct this issue?

Hope this makes sense!

Best answer by VolvoGirl

Expert Reviewed

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.

BUT do not enter any Health Care Marketplace insurance you bought. 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.